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The European Parliament has approved the Omnibus II Directive, finalising the new risk-based regulatory framework for Solvency II.
Bermuda and European re/insurers can now begin to finalise their plans to implement Europe’s great regulatory project, which will become law on January 1st 2016.
Commenting on the approval, Rick Lester, lead Solvency II partners at Deloitte, says: “The European Parliament’s vote is a key step in the long process of implementing the regulations on 1 January 2016. Insurers have generally made good process meeting the new requirements and while there is further work on the detailed implementing rules, insurers will be relieved that the deadline for implementation has been clarified and there is an agreed basis from which to proceed. “
Lester adds that insurers have been dealing with an unprecedented tide of regulation, which has cost European insurers €4 billion annually. Further delays to the implementation of Solvency II would have been hard for insurers looking to plan for changes and manage their business, says Lester.
The ruling will help set in stone deadlines that many feared would slip further.
Solvency II, Bermuda, European parliament, regulation