The European Parliament has proposed delaying the Solvency II deadline to January 1, 2014.

Previously the implementation date for insurers was January 1, 2013, but the Council of Europe has decided they need more time.

A change in the presidency of the European Union has also been a factor in the change of implementation date, but it is now expected Solvency II discussions and its implementation will start again.

In the meantime, insurers will continue to use Solvency I standards throughout 2013.

PricewaterhouseCoopers Global Head of Solvency II Paul Clarke says the move is “interesting, but not the full story”.

“The European Parliament still needs to put forward its recommendation ahead of negotiations between the two groups before the market can fully understand where the issues about the Level 1 text and implementation date will end,” he said.

“It is unlikely the issue will be fully resolved until later this year, so it is vital insurers press ahead with their current plans and timetable.

“Any distraction now could prove potentially costly in the long run.”