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Daily Insurance Industry News
Thursday 22nd of February 2018
May 12, 2010

Insurance industry unready for Solvency II

by Richard Kilner

Story link: Insurance industry unready for Solvency II

Deloitte has commissioned a report by the Economist Intelligence Unit to assess the UK insurance industry’s preparedness for the incoming Solvency II regulations.

Worryingly, 36% of UK insurers indicated that they did not believe the industry as a whole would be ready for the introduction of the new rules by the 2012 deadline.

More than half (61%) of boards have not had their budgets for Solvency II implementation approved, and one in five have yet to compile a budget for the new regulations.

Rick Lester, lead partner of the Solvency II team at Deloitte, has stated that the industry ought to be better prepared for Solvency II.

The new regulations, Lester went on to say, will have a profound effect upon the sector, with one in three firms needing to alter their organisation/structure due to Solvency II.

In addition, 11% will need to relocate.

The areas of most concern for insurers are EU/FSA clarification and guidance, compliance-related costs and the internal model approval process.

 

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