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CEA slams Omnibus II timeframe

Tuesday 3 May 2011 - by Nicola York

The European insurance and reinsurance federation has slammed the timeframe for adoption of Omnibus II saying that "prolonged political negotiations" will impact the implementation of the directive.

Omnibus II is a new directive proposed by the European Commission that makes significant changes to the Solvency II directive including the postponement of Solvency II implementation to 1 January 2013.

The CEA says its members have concerns that delaying the adoption of Omnibus II could have a knock-on effect on policyholders who may face uncertainties in their rights and obligations upon implementation of Solvency II.

It says: "It is important that undertakings have sufficient certainty in their implementation projects early enough to prepare for entry into force of Solvency II, and for example, to develop new products and systems."

It adds: "Simultaneous discussions on issues affecting Levels 1, 2 and 3 of Solvency II make this process even more difficult to follow for the industry and whilst timing is a crucial issue, it is of utmost importance that the quality of legislative drafting is not impacted. Continuous dialogue and consultation with industry is essential throughout this process."

The CEA says that while it supports entry into force of Solvency II by 1 January 2013, transitional provisions are necessary to allow for a smooth changeover from Solvency I to Solvency II. It says it is important to clearly distinguish between a transitional period and an actual delay to the Solvency II project.

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