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Daily Insurance Industry News
Sunday 19th of August 2018
April 11, 2011

Insurers lose confidence in Solvency II deadline

by Gill Montia

Story link: Insurers lose confidence in Solvency II deadline

Insurers are less confident that the industry will achieve Solvency II compliance by 1st January 2013, according to new research undertaken by the Economist Intelligence Unit for Deliotte.

The survey found that just under half of respondents (46%) were confident or very confident about the prospects for industry compliance, compared to 63% in 2010.

However, firms were more optimistic about their own chances of achieving compliance than for the industry as a whole.

In addition, 65% of insurers questioned said they expect to introduce new risk mitigation techniques due to Solvency II, whilst almost half (47%) said they may need to reorganise or restructure, compared to approximately one-third last year (34%).

Life insurers were more likely than non-life companies to say that they may need to reorganise or restructure (57% vs 36%) and were also more likely to say that they may need to launch new products (33% vs 11%).

Commenting on the findings, Deliotte Solvency II lead partner, Rick Lester, says: “The consequences of Solvency II include the number of companies looking at restructuring or relocating and the anticipated effect it will have on consumers as a result of changes to product mix, design and pricing.”

However, all respondents have now submitted budgets, which is a significant improvement on last year’s figure of 62%.

 

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