Global News - Solvency II regulatory harmonisation delayed
Source: Asia Insurance Review | Jan 2016
While all European insurers are required to be compliant with the Europe-wide risk-based system by 1 January 2016, the European Insurance and Occupational Pensions Authority (EIOPA) has allowed insurance regulators significant leeway in both how and when they implement the new Solvency II standard, according to credit provider Insurance Regulatory Capital (IRC).
In a statement, IRC quoted EIOPA Chairman Gabriel Bernardino’s recent announcement allowing insurance regulators a further five years to harmonise their practices across the EU, “in light of current differences in supervisory cultures and practices”.
Some national governments have also yet to transpose the directive into national law, creating further uncertainty in those jurisdictions. The differences in insurance regulators’ requirements from jurisdiction to jurisdiction within the EU will still need to be assessed in 2016.
“The quality of national supervision is no longer solely a national or regional issue; it is a European issue. The EU supervisory system will only be as strong as its weakest link,” Mr Bernardino added.