The EU’s Solvency II Framework Directive — “Level 1” — was agreed in 2009. Since then, work has focused on the “Level 2” implementing measures, which put the detail on to the framework. However, another Directive, Omnibus II, needs to be passed before the Level 2 implementing measures of Solvency II are agreed. This is because Omnibus II makes changes to Level 1, reflecting developments such as the EU reforms in the Lisbon Treaty.
There have been delays in the timetable for the adoption of the Omnibus II Directive. The vote in the European Parliament’s Economic and Monetary Affairs (ECON) Committee on Omnibus II is now scheduled for late March instead of January and the European Parliament’s plenary vote is not expected before July.
It is unclear yet what the effect of the delays in the adoption of Omnibus II will be to the overall Solvency II timetable. The European Parliament is already starting to look in detail at the Level 2 implementing measures of Solvency II. This should make it possible to shorten the subsequent Level 2 consultation.
Officially the current timetable for a “split” implementation of Solvency II remains, with transposition into national law scheduled for 1 January 2013, followed by entry into force on 1 January 2014. Insurance Europe supports this, but has stressed the need for insurers to have at least 18 months between the point at which the reporting requirements — “Level 3” — are finalised and the point at which they are to be used.
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The article is to be found below, as pdf attachement.