British insurers have been given up to two years’ breathing space on tougher regulations requiring them to hold more capital against risks.

The rollout of Solvency II across Europe has already been delayed by a year because of disagreements between the European Union and member states over how cash buffers for life insurance should be calculated, pushing the expected start date to January 2014.

Now the Financial Services Authority (FSA) has given UK insurers until December 31 2015 to submit models of their capital requirements, extending the deadline from late next year.

FSA Insurance Director Julian Adams says the final implementation timeframe will be altered once “credible” dates emerge.

Earlier this month European Insurance and Occupational Pensions Authority Chairman Gabriel Bernardino called for a “clear and credible” timetable for implementing Solvency II, citing “major worries” among members about the new rules.

This came after European Union regulatory Commissioner Michel Barnier ordered a Solvency II impact assessment, due for completion in March.

Only 34% of German, 17% of Italian and 13% of Spanish insurers expect to be compliant with Solvency II by 2015, according to Ernst & Young.