The European Union has reached agreement on new capital rules for insurers under Solvency II, making the proposed January 2016 start date viable.

Disagreement over guarantees on long-term products such as life insurance has delayed adoption of the new regulatory regime.

Fitch Ratings says the agreement is a step towards hitting the 2016 deadline but is likely to leave some major insurers dissatisfied, because they will need extra capital.

However, the agency does not believe Solvency II will affect insurers’ credit ratings.

The new regime – which has suffered years of delays – will cover governance, risk management, forward-looking assessment, own risk and solvency assessment, and information given to supervisors.