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Insurers are ill prepared for Solvency II

One-third of insurers are not confident the industry will be ready for Solvency II by 2013 while 11 per cent say they are considering relocating away from the European Union.

The survey by The Economist Intelligence Unit, commissioned by Deloitte, was conducted in January and questioned 61 insurers currently operating in the UK about Solvency II.

The results found that 36 per cent of insurers are not confident the industry as a whole will be compliant by December 31, 2012. Fifty-two per cent say they are confident and 11 per cent are very confident the deadline will be met.

Almost 70 per cent of respondents say they have 40 per cent or less of the resources required for their Solvency II programmes in place already and 61 per cent are yet to have their budgets for Solvency II implementation approved.

The survey shows one in five insurers have still not compiled their budgets.

Deloitte lead partner of the Solvency II team Rick Lester says: “Our findings demonstrate that there is still a substantial amount of work to be done to prepare for Solvency II.

“The significant finding that 11 per cent plan to relocate their business will have broader consequences well beyond the insurance market.”

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