Solvency II delayed for two months
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The European Commission has delayed the introduction of Solvency II by two months until December 31, 2012.
Solvency II will require insurers to match the risk on their balance sheets by holding almost as much in capital reserves.
EU commissioner for financial services Michel Barnier said the decision to delay the new rules was made to align the start of Solvency II with the financial year for most EU insurers.
He said: “As very few insurers end their financial year on October 31, I wish to propose deferring the date of entry into force of the directive…to bring it into line with the date on which the accounts of most European insurance undertakings are closed.”
Some insurers have voiced concerns at the changes, saying current economic conditions make it tough to raise capital.
Barnier said: “We do not seek excessive prudence, but necessary and sufficient prudence.”
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