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Lloyd's: Solvency II on course for 2013

Tuesday 10 January 2012 - by Karina Whalley

Lloyd's of London says the insurance industry will stick to the 1 January 2013 original deadline for implementing the Solvency II directive "regardless of any delays by the European Commission".

Lloyd's chairman John Nelson cited the directive as one of his top priorities in 2012 and said that the insurance market stands at a "critical point" in implementing the new standards.

"Another challenge which we are all anticipating is the need to achieve implementation of Solvency II by 1 January 2013, regardless of any delays by the European Commission," he said in a statement outlining the year ahead, released on Monday.

"I know my arrival coincides with the last circuit of what has been a marathon effort by both the market and the corporation.

"But we now arrive at the critical point, when we need to make considerable efforts to ensure we achieve successful implementation," added Nelson, who has been chair since October 2011.

Solvency II is a wide-ranging reform of EU insurance regulation and supervision which adopts new capital requirements and risk management standards to replace 14 existing EU insurance directives, originally due to come into force at the start of 2013.

However, Europe's internal market commissioner Michel Barnier said in November that the deadline for implementation would be pushed back to 1 January 2014.

Lloyd's finance chief said last year that the group would spend considerably more than its previous estimate of £250m ($400m) to prepare for Solvency II's capital rules. The group, which has a staff of around 940, is using 10 per cent of its workforce to implement the directive by its original deadline.

Nelson said: "We will have to work with government and regulators to encourage them to create the right infrastructure and regulatory environment to enable us to compete efficiently.

"I see that as an important part of my job."

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2012-01-11 09:01:29 | Anonymous
Since Lloyd's successfully ignored the audit requirements of Directive 73/239, why should we expect them to conform to the new directive.
Incidentally it was Lloyd's non compliance with 73/239 which has caused this new directive !