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Europeans likely to delay Solvency II implementation

Implementation of Solvency II regulations across Europe is likely to be delayed until 2013, with participating nations unlikely to be prepared in time for the original date of inception.

Solvency II is the updated set of regulatory requirements for insurance firms that operate in the European Union. The legislation is intended to support the development of a single market for insurance services in Europe and was scheduled to commence in October 2012.

European Commission Internal Market and Services Directorates General Karel Van Hulle told delegates at a conference last week the regulations are now likely to proceed from January 2013.

Solvency II is based on economic principles for the measurement of assets and liabilities, and measures risk based on consistent principles including minimum capital requirements.

The standard comprises three “pillars”, dictating capital requirements, the governance and risk management of insurers, and disclosure and transparency requirements.