When the FSA announced that they predicted yet another yearly delay on the implementation of Solvency II, Contractuary.com was far from surprised.
When we asked fellow actuarial professionals their opinion on the matter, it was clear to gage that the feelings towards the decision were indeed rather mixed.
While some think it will just result in further expenditure for the industry, others believe that the extra time will allow the actuarial profession to prepare and refine it’s processes, models, URSA etc., as it is not a last minute project to be rushed.
However, when asked why they believe the FSA has pushed back the date, the jury seems to be out in a unanimous verdict – as a direct result of the Greek crisis. According to one actuary, it is due to the “Greece problem and the slow political process to tackle it as a live example, affecting solvency II positions for insurance businesses and many others”.
According to Phill Smart, UK Head of Solvency II at KPMG, one of the biggest risks is that this announcement will result in further delays to the legislative process. He believes that it may result in even more uncertainty.
He went on to comment that, “while many in the industry will welcome the delayed implementation, there is a significant proportion of companies that have invested heavily in preparing for the original deadline and would now prefer to move quickly to the new regime.”
Either way at Contractuary.com, we believe that the actuarial industry will adapt as always to the effect of yet another empty promise. We will welcome Solvency II when the time comes and embrace it for all it’s worth. Until then, we encourage further preparation for the anticipated arrival…whenever that may be!