Delays to Solvency II implementation in Europe will not affect Australia’s timetable for increased capital standards.

An Australian Prudential Regulation Authority (APRA) spokesman told insuranceNEWS.com.au the European proposals “are not connected to what we are doing, so there will be no change to our [implementation] dates”.

APRA is proposing Australian insurers increase their capital reserves as part of a 2009 review of operational risks in 2009.

It has held discussions with both general and life insurers about the proposals, and the new standards are now being formalised.

APRA has set an implementation date of January 1 2013. This means insurers will have to use the new standards in the third reporting period of the 2013 financial year.

The European Parliament is now proposing to delay implementation of Solvency II for 12 months until January 1 2014.