Brussels, 03/10/2013 (Agence Europe) - EU Internal Market Commission Michel Barnier has unveiled a draft directive postponing until 1 January 2016 application of the Solvency II directive on solvency rules for European insurance companies.
The directive was initially due to come into force on 1 January 2014, but this is no longer possible. A legislative proposal known as “Omnibus II”, currently in trilogue discussions, makes significant modifications to Solvency II, in particular as regards insurance products with long-term guarantees (such as life insurance). Based on a report by EIOPA (the European Insurance and Occupational Pensions Authority), a package of measures is under discussion to facilitate the transition to Solvency II and to mitigate the effects on the undertakings' own funds of artificial volatility of asset prices or discount rates (see EUROPE 10868). Barnier said political agreement on Omnibus II is within reach.
Before the new rules come into force, implementation measures for Omnibus II will have to be presented, but they cannot be drawn up until the legislation itself is finalised. The Commission says extra time is also needed by the insurance industry to help it adapt to the new legislation. (MB/transl.fl)