Solvency II continues to hog the headlines, as wider implications are debated by politicians, regulators, and the insurance industry.
EC internal market commissioner Michel Barnier stated that Solvency II will not be applied wholesale to pension schemes as the sector increasingly criticises what has been published so far.
Director general of the Association of British Insurers(ABI), Otto Thoresen, said on Thursday at The Insurance Summit in London sponsored by Economist Conferences that "the draft rules pose a challenge to the UK pensions annuity market and to insurers' ability to make long term investments and generate growth in the economy." Thoresen also called for third country equivalence to be higher up the political agenda if the EU insurance sector was to remain a global market leader.
At the same conference, executive director of EIPOA, Carlos Montalvo, stressed that the industry needs Solvency II now and that policymakers should not allow politics to impede its progress-he emphasized that "moving from one framework to another means challenges: it means risk, but it also means opportunities."
Peter Skinner MEP, a member of the European Parliament's Committee on Economic and Monetary Affairs, in a presentation at the Summit, said he was confident that Solvency II could be in place for a "soft launch" on 1st January 2013, meaning that the responsibilities of country supervisors would start from that day, with implementation from insurers following. He stressed that "country regulators should be discussing issues across borders on a daily basis."
Insurance Newslink comments: In a week when Prudential warned that the Solvency II implications for a global insurer might contribute to a decision to redomicile to Hong Kong, the running battle over pensions schemes has been added to by the potential impact on insurers' contribution to economic growth because of new capital requirements and the need to review investment strategy.
EIOPA leadership has been putting pressure on the politicians and the industry is screaming for clarification. There is still much to do, and changes to the draft rules look inevitable, as Solvency II ripples spread wider.
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