Solvency II Implementation Timelines

Author:Ms Sharon Daly and Darren Maher

Solvency II - delayed implementation

Due to continuing uncertainties surrounding certain calibration issues and the timing of a final quantitative impact assessment, it is widely accepted that the proposed implementation date for Solvency II of 1 January 2014 will not now be met. Final agreement on Omnibus II has not yet been reached and the European Parliament has recently rescheduled the plenary vote on the Omnibus II Directive to 11 March 2013. As yet, a revised timetable for the implementation of Solvency II has not been formalised and the Central Bank of Ireland has urged European authorities to provide certainty in this regard as soon as possible. Given the continuing uncertainty around the range of potential outcomes, the Central Bank is encouraging industry to maintain its focus on the implementation of Solvency II. Separately, the Chairman of the European Insurance and Occupational Pensions Authority (EIOPA) has written to Michel Barnier, European Commissioner for Internal Market and Services, setting out EIOPA's strong concerns regardingthe stagnant Omnibus II negotiations and the impact that this is having on the implementation of Solvency II. Please click here for the full text of the letter. EIOPA publishes opinion on interim measures regarding Solvency II EIOPA has published its first legal opinion on certain interim measures as part of the preparation for Solvency II. The idea of introducing certain elements of Solvency II ahead of an uncertain Solvency II implementation date is being referred to as, ''Solvency 1.5. "Solvency 1.5" was an idea first introduced by EIOPA Chairman, Gabriel Bernardino, in October 2012 in a letter to the European Commission, the European Parliament and the European Council. EIOPA executive director, Carlos Montalvo, has previously stated that the delay in implementing Solvency II represented an opportunity for the industry to voluntarily adopt the regime and that all areas of Solvency II that are non-contentious could be brought forward regardless of delays over issues relating to capital - ..if any entities could go in the...

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