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Daily Insurance Industry News
Wednesday 21st of November 2018
June 20, 2011

KPMG welcomes Omnibus II proposals on run-off sector

by Gill Montia

Story link: KPMG welcomes Omnibus II proposals on run-off sector

KPMG has welcomed proposed concessions for the insurance run-off sector under Solvency II.

Referring to a revised draft of the Omnibus II Directive issued on 14th June, the firm highlights specific transitional arrangements for (re)insurance companies in run-off that should lead to a significant proportion of the run-off sector being exempt from Solvency II, for at least three years post implementation.

The proposals relate to (re)insurance undertakings that have ceased to write new (re)insurance contracts and to some firms in insolvency or restructuring, where an administrator has been appointed.

KPMG’s Solvency II technical group director, Janine Hawes, comments: ‚ÄúThere will be some run-off companies that will still need to comply with Solvency II and it is also not clear what additional evidence supervisors will require to support the progress that is being made towards terminating activity.”

She adds: “However, the new transitional arrangements will clearly be welcomed by the vast majority of the run-off sector.”

Meanwhile, implementation of Solvency II could be delayed until 2014, according to reports around today.

Last week, the Financial Services Authority said that delays to the timeline have affected its own consultation process and shortened the window for implementation.

The regulator is therefore looking for ways to manage the uncertainty, and will review Solvency II timelines regularly.

 

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