RC: What are the key drivers behind the introduction of the Solvency II Directive? How have its provisions been received by insurers?

Miehe: Solvency II is a part of the wider ambition of the European Union to organise a common market for insurance. Part of this plan is to provide the same level of protection to all policyholders in Europe. This is a first step toward the creation of a unified market. Insurers have been associated with the elaboration of the Directive through the Lamfalussy Process. Some provisions have been well received while others have fuelled intensive discussions with regulators, especially for long-term guarantees. Not all questions are currently solved and a lot of fine tuning will be required during the implementation phase.

RC: Do you have any concerns as to how the Solvency II Directive has been developed? What changes, if any, would you like to see before it comes into effect on 1 January 2016?

Durand: We have no real concerns as to how the Directive has been developed. Consultation with the industry has been intensive but not all of the desires of the industry have been fulfilled by regulators. In fact, discussions are continuing and the implementation phase will bring new adaptations. More worrying seems to be divergence between the application of Solvency II in different countries. The organisation of convergence by the European regulator will play a major role in delivering standardised solutions all over Europe. Regulators should also pay special attention to the accounting issues surrounding Solvency II and the implementation of IFRS.

Apr-Jun 2015 Issue

ADDACTIS Worldwide