Solvency II – Updates
Below is a summary of the recent changes and developments in relation to the Solvency II Directive. These are:
- The European Union Council has published an information note on 13 July 2012 which states that the Council should be in a position to approve the proposed Directive amending the Solvency II transposition and application dates to 30 June 2013 and to 1 January 2014, although the Council has not yet indicated when it will be issuing its approval. This amendment has already been adopted by the European Parliament;
- the European Insurance and Occupational Pensions Authority (EIOPA) published its final draft guidelines report on own risk and solvency assessment (ORSA) under the Solvency II Directive on the 12 July 2012, whereby it encourages the industry to follow the early-adoption method;
- EIOPA has published its final report on reporting and disclosure requirements under the Solvency II Directive on 10 July 2012, and has stated that it expects the full package on Solvency II reporting and disclosure to be available later on in 2012;
- the FSA published its second consultation paper on transposing the Solvency II Directive on 11 July 2012 which sets out, among other matters, the proposed new rules and guidance which in the future will form part of the new prudential sourcebook for insurers following the implementation of the Solvency II Directive, along with the proposed amendments to the rules and guidance relating to both with-profits and linked long-term business.