LONDON/FRANKFURT (Reuters) – European Union officials have entertained the idea of a two-year delay in the implementation of strict new capital rules for the bloc's insurers, an internal document shows.
The Solvency II rules, proposed by the European Commission and aimed at making insurers hold capital in strict proportion to their liabilities, have already been delayed by persistent disagreements over their final shape, angering the industry and undermining their intended status as a benchmark for regulators worldwide.
The EU document, seen by Reuters, looks at the option of holding tests to gauge the impact of Solvency II after governments agree the new rules in principle, and concludes that this would push the new regime's start date out to 2016.
However, the document, which was prepared by the Commission for discussion by EU lawmakers and member states, expresses a preference for holding the tests first because this would allow the rules to take effect in 2015, just one year beyond the official 2014 deadline.
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