Wednesday, 13 February 2013

EIOPA on Solvency II implementation - "no doubt about it"

Now that most Solvency II stakeholder's hands have been temporarily filled with the LTG spreadsheets and assorted accoutrement, Seniors Bernadino and Montalvo have hit the trade press with more aggression than an Irish prop forward in order to clarify their position on the drivers behind their opinion on interim measures at the end of 2012, as well as the ultimately likelihood of Solvency II implementation.

From Sr. Bernadino to the Actuary magazine

  • On the shortcomings of Solvency I - "...if you have more risk, you should have more capital"
  • "I think it will take until then [2016] to get started" on Solvency II
  • "We [EIOPA] believe 2014 and 2015 can be used as an opportunity to enter into the system in a better way"
  • "Solvency II will be implemented, and there should be no doubt about it"
  • "EIOPA will do the necessary work to make the implementation of Solvency II happen on January 2016"
  • Emphasises that we are "not building from Solvency I", in the face of "Solvency 1.5" questions
  • Notes that EIOPA's opinion on interim measures is borne from concerns that the delay may lead to "different national solutions [emerging] to the detriment of a good functioning market"
  • "Differences between supervisory cultures" is part of the IMAP inconsistency problem - no implication that either the UK is doing too much or mainland Europe not enough
  • Makes the point that stakeholders "...must avoid the temptation of re-opening more issues" - hard to think of any contentious issues which aren't already wide open for debate, but clearly some concern that the current smorgasbord could be supplemented.
  • For those at the smaller end of the market, he gies a specific example of where an Actuarial function could be staffed by someone other than a "pure actuary"
All this in the week where a succession of industry figures in London lined up to flog Solvency II's hobbling carcass, whether it be the IMAP element (Hiscox), or the very premise of one-size-fits-all regulation (Pru). Not a good week to be trying to kill a horse in the UK gents...

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