21 November 2013

Most rated insurers are ready for Solvency II, says AM Best

According to a special report by A.M. Best on Solvency II most rated European insurers are prepared for Pillar I and Pillar II but fatigued by the regulatory regime’s moving deadline. Implementation is currently expected in January 2016.

The report reads: “Solvency II has been underway for 13 years and has been fraught with delays… This has been a source of frustration for the insurance industry, with delays resulting in additional costs and companies being required to dedicate staff to prepare for a moving target. While there are some exceptions, with a minority of insurers still behind schedule, generally rated entities are fully prepared to adopt Pillar I and Pillar II.”

A.M. Best asserts that most rated insurers are already running their own internal capital models and have built up their capabilities. Larger European rated insurers, and in particular U.K. insurers, have submitted their models to regulators for approval.

The rating agency wrote: “A.M. Best believes it is imperitive that the momentum continues with Solvency II, and that further delays in its implementation would be detrimental to the insurance industry.”