About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

European Insurers Struggle to Meet January 2016 Solvency II Compliance Deadline

Subscribe to our newsletter

As the January 1, 2016 deadline for Solvency II approaches, insurers across Europe are struggling to complete compliance programmes that have been held up by delays in one area causing knock-on effects in others and by slow regulatory approval of internal models for capital requirements that has left little time to work with asset managers and servicers that are also part of the compliance process.

Larger countries with the most advanced financial infrastructures are better prepared for Solvency II than their smaller neighbours, and Northern Europe is in a better position to meet the regulatory deadline than Southern Europe. There are country-by-country differences in terms of focus on the three pillars of the regulation, with insurers in Germany, for example, being confident that they have mastered the financial requirements of Pillar 1. In France, insurers have focussed on Pillar 3 requirements covering reporting and disclosure, and including the asset look-through element of the regulation that requires cooperation between insurers and their asset management partners.

Focussing on the look-through process, take up of the tripartite model developed by the Investment Association in the UK, Club Ampere in France and the BVI in Germany in an attempt to ensure common presentation of data that insurers need from asset managers has been chequered across Europe, with some large insurers making bilateral agreements with their asset managers.

Despite Solvency II’s design to ensure that insurers demonstrate and sustain solvency, asset managers have been proactive in tackling the regulation on behalf of their insurance clients and many recognise that the regulation, and the larger regulatory shift to which it belongs, will have an impact on their business models.

These and other findings are the result of a review of European readiness for Solvency II compliance published by Silverfinch, provider of a utility-type service for secure data sharing between insurers and asset managers, and entitled ‘The European Race to the Solvency II Finish Line’. John Dowdall, managing director of Silverfinch, says: “In spite of the deadline for Solvency II, the fact remains that there is much work to do. Across Europe, the majority of asset managers are aware of the benefits of helping their insurance clients with Solvency II, but how to respond to the regulation has clearly split the continent.”

With less than 100 days to go until the compliance deadline, the review concludes with some optimism, stating: “All is not lost, there is still time to achieve a satisfactory, albeit not perfect, introduction to Solvency II, however all of the stakeholders will need to up their game, and communication will be key.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Streamlining trading and investment processes with data standards and identifiers

Financial institutions are integrating not only greater volumes of data for use across their organisation but also more varieties of data. As well, that data is being applied to more use cases than ever before, especially regulatory compliance and ESG integration. Due to this increased complexity of institutions’ data needs, however, information often arrives into...

BLOG

Providers of SFDR Reporting Solutions

Europe’s ESG regulatory space is dominated by the Sustainable Finance Disclosure Regulation, which requires listed companies in the bloc to declare the sustainability credentials of the funds they manufacture and the assets in which invest. Its intention is to give investors and advisers a clearer understanding of how sustainable investments are. Compliance requires the reporting...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...