Policy makers in Brussels have now provided the European insurance industry with much needed clarity on the formal start date for Solvency II. This clarity, in conjunction with EIOPA's guidelines on how supervisors should act in the period from 1 January 2014 through to January 2016 in preparation for Solvency II, together with the conclusion to the EU's trilogue negotiations, have brought Solvency II back onto the agenda for the insurance industry. The difference now is that we are working towards a known start date of 1 January 2016.
EIOPA's guidelines for Supervisors to follow from January 2014 are based on Solvency II principles and only focus on 4 key topics: systems of governance, forward looking assessment of own risks, submission of information to supervisors and pre-application for internal models. Many supervisors in the EU are adopting Solvency II governance and risk management procedures (including ORSA), as well as disclosure requirements in place from 2014, in line with these EIOPA guidelines. On top of this, many supervisors across the EU are asking insurers to develop a plan to demonstrate how they will be Solvency II compliant from January 2016.
Drawing on our work with insurers and supervisors on the practical application of the directive, PwC helps businesses to simplify and accelerate implementation, and tackle the strategic as well as the technical challenges of Solvency II.
PwC is also working closely with insurers in other jurisdictions – Bermuda, Switzerland, Japan, South Africa, Australia, Singapore, China, and the US amongst other leading global insurance centres – on how to deal with the implications of Solvency II for businesses located there.
Solvency II will be effective from 1 Jan 2016. PwC believes firms have plenty to do on Pillar 1, Pillar 2 and Pillar 3 to get ready.