Over a third of UK insurers are worried the industry will miss the new January 2014 Solvency II compliance deadline, according to a survey by Deloitte.
Deloitte’s annual Solvency II survey reveals 37 per cent of respondents fear the industry will not be ready for the new rules when the directive comes into force in January 2014, up from 24 per cent a year ago.
Last year, the implementation of the directive, which places new capital requirements on insurers, was delayed by a year after the European Council and parliament agreed the delay.
According to Deloitte, 73 per cent of respondents to their survey said the delay in the implementation date had taken a toll on company finances, with 42 per cent saying the delay had increased costs by more than 5 per cent. Sixty UK-based insurers responded to the survey.
Deloitte lead Solvency II partner Rick Lester says: ““The primary underlying cause for concern is the continued uncertainty around the detailed requirements of Solvency II and the fact that these are unlikely to be clarified until relatively close to the go-live date. This means there will be not much time for insurers and regulators to finalise their arrangements and approach with complete knowledge of the rules.”
Last week, Conservative peer Lord Ashton slammed the FSA over its implementation of the directive accusing the regulator of “losing its sense of perspective” over the amount of documentation insurers have to provide to achieve compliance.