Solvency II: delays and uncertainty

While welcoming the restoration of a one year period for industry between the final rules being made and implementation, KPMG has cautioned that this is not an end to the uncertainty that surrounds Solvency II.

Phil Smart, UK head of Solvency II at KPMG, commented: “While many in the industry will welcome the delayed implementation, there is a significant proportion that have invested heavily in preparing for the original deadline and would now prefer to move quickly to the new regime.

"This is especially true for those who have been working over the last few years towards internal model approval and are now keen to begin seeing a return on their investment. Our preference would have been to accelerate the legislative process rather than the blanket deferral that has now been announced, and it is difficult to see how these firms will get the benefit of their early progress.”