2014 is better Solvency II start date, say 60% of Aon Benfield conference delegates
Aon Benfield has released new findings that show 60% of European insurers attending its recent International Analytics conference think 2014 would be a better starting date for Solvency II.
By contrast, 31% of the delegates did not want to see the starting date delayed and are working towards the January 1, 2013 deadline.
The remaining 9% thought "maybe" the regime should be delayed.
Aon Benfield said there could be potential delays to the current timetable as Omnibus II, which modifies the original directive of Solvency II, must firstly be passed into legislation before the European Commission can formally adopt the regime's implementing measures and implementing guidance.
All of these components have to be passed into legislation following the required consultation periods, ahead of Solvency II's inception.
Meanwhile, insurers are eagerly awaiting guidance on how the Solvency II regime will take shape following their completion of the QIS5 assessment.
Aon-Benfield's survey also found that insurers have concerns about the level of understanding of their local regulator.
The results showed:
• 61% of European insurers polled think their regulator is not up to speed with internal models
• 54% of European insurers polled think their regulator is not up to speed with underwriting risks, in particular catastrophe risk
Marc Beckers, head of Aon Benfield Analytics in Europe, the Middle East and Africa, said: "Insurers are juggling a plethora of pressures to comply with Solvency II. We are helping clients to prioritise their efforts by concentrating on the areas that really impact their capital charge. For example, the Cat Task Force has been forced to review the standard formula for non-life catastrophe risks as the results were deemed too volatile. However we have little hope for fundamental change before the start of Solvency II."
Gareth Haslip, head of Aon Benfield's risk and capital strategy team in Europe, the Middle East and Africa, added: "Insurers need to take strategic decisions and be prepared to change their business model in order to be ready in time. By meeting the 2013 deadline, companies that have a good grasp of Solvency II will have more time to focus on how best to operate their business for the benefit of their shareholders in this new environment. Being prepared will also bring a competitive advantage."
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