Insurance firms are encouraging the FSA to go ahead with plans to introduce elements of Solvency II in 2013.
Initial concerns had been raised by insurers regarding the overall cost of running two parallel capital assessment models in 2013.
The European Council has backed the European Economic and Monetary Affairs Committee’s recommendation for a delay, making it almost certain that the rules will now be implemented across Europe one year later than planned, in January 2014.
Lloyd’s general counsel, Sean McGovern, said the market does not want a delay and is confident it will be ready for a 2013 start. He commented: “Given the significant time and money invested in building our internal model we just want to get on and use it, not mothball it for a year.”
“While everyone knows there will be a delay, the FSA is keeping the momentum up by pressing the industry to continue to work towards a 2013 implementation. We support that and would support any move by the FSA to move from the current ICAS system to Solvency II ahead of the 2014 date.”
The new directive, known as Solvency II, which is designed to better match the capital that insurers hold with the risks they take, has been making its way through the machinery of Brussels since the framework directive was passed in the European Parliament in April 2009.