Brussels, 20/09/2012 (Agence Europe) - The European Commission is suggesting waiting for the outcome of a new impact assessment of the new solvency rules for European insurance companies, expected in March 2013, before concluding the inter-institutional talks on the draft Solvency II Directive and the Omnibus II legislative package (see EUROPE 10581), which may well postpone entry into force of the new legislation from 2014 to 2015.
European industry has welcomed the decision to await the impact assessment results, with Insurance Europe explaining in a press release that it was regrettable that this might lead to delays in the Solvency II process, but it was crucial for the test results to be reflected in the Omnibus II package so that the new legislation can be both appropriate and useable. The organisation welcomes the fact that the legislator recognises that EU rules should consider the risks connected with long-term investment and not encourage artificial volatility.
A spokesperson for EU Internal Market Commissioner Michel Barnier said on Wednesday 19 September that it was a matter of knowing how to improve risk management while ensuring a sufficient number of long-term investors. He said it was too early to say whether awaiting the impact assessment outcome would have any bearing on the date when the rules come into force, but the extra time was needed to finalise the inter-institutional negotiations, adding that the Commission sees it as a way of facilitating the talks. (MB/transl.fl)