Policy makers in Brussels have now provided the European insurance industry with much needed clarity on the formal start date for Solvency II. This clarity, in conjunction with the European Insurance and Occupational Pensions Authority (EIOPA) guidelines on how supervisors should act in the period from 1 January 2014 through to January 2016 in preparation for Solvency II, together with the conclusion to the EU's trilogue negotiations, have brought Solvency II back onto the agenda for the insurance industry. The difference now is that we are working towards a known start date of 1 January 2016.
EIOPA's guidelines for Supervisors to follow from January 2014 are based on Solvency II principles and only focus on four key topics: systems of governance, forward looking assessment of own risks, submission of information to supervisors and pre-application for internal models. Many supervisors in the EU are adopting Solvency II governance and risk management procedures (including ORSA), as well as disclosure requirements in place from 2014, in line with these EIOPA guidelines. On top of this, many supervisors across the EU are asking insurers to develop a plan to demonstrate how they will be Solvency II compliant from January 2016.