The European Union is considering a further delay to Solvency II, to give supervisors, insurers and reinsurers enough time to prepare for the new regulatory regime.

The EU Council, European Commission and European Parliament are still discussing how to treat insurance products with long-term guarantees, such as life insurance.

The EU-wide risk-based regime was initially intended to take effect last year, but it was deferred until January 1 next year.

Proposing a further delay to January 2016, EU Commissioner Michel Barnier says he has always wanted rapid implementation “but the currently planned date is simply no longer tenable”.

The European Insurance and Occupational Pensions Authority recently published the final guidelines on Solvency II after a public consultation that drew more than 4000 comments.

The guidelines were designed to help regulators and insurers prepare for a phase-in next year and in 2015. National regulators must decide how to incorporate the guidelines into their frameworks.

Solvency II covers governance, risk management, forward-looking assessment, own risk and solvency assessment and information provided to supervisors.