“Agreement on Solvency II a good starting point for further development of the rules.”

The German Insurance Association (GDV) welcomes the agreement on the key aspects of Solvency II. “The compromise which has been negotiated at the EU level represents a milestone in the political process and is a good basis for the necessary transition to Solvency II in a challenging market environment with artificially low interest rates,” said GDV Management Board Chairman Jörg von Fürstenwerth.

“The compromise answers key questions concerning the measurement of long-term guarantees under Solvency II.” He noted that the compromise was a good starting point for further development of the Solvency II rules. Given the narrow timetable until Solvency II is set to take effect, he pointed out that it is now essential to concretize the new rules as quickly as possible without decisively watering down the compromise. “Companies need clarity as to the final rules, and soon,” von Fürstenwerth stressed.

The trilogue parties, the European Parliament, the European Council and the European Commission, reached an agreement on Wednesday, after intensive negotiations, concerning the details of the “Omnibus II” Directive, which specifies key aspects of Solvency II.

New rules on 1 January 2016: implementation date highly ambitious
However, important details still need to be defined before the new rules take full effect on 1 January 2016, on both the European and national levels. “There is still a lot of work to do at the secondary legal levels,” said von Fürstenwerth. “As a result, the implementation date is highly ambitious. It is already evident that the period of time between the date when the rules are finalized and the date on which they go into effect will be very short. This is asking a lot of the insurance industry.” The EU Commission expects to make proposals concerning the concrete formulation of the rules in mid-2014. As things stand, Solvency II has to be implemented into national law by the start of 2015.

Further information: Contact persons:
>> All articles on Solvency II Daniela Röben
Phone: (+49) 30/ 2020 – 5181
Email: d.roeben@gdv.de

Karsten Röbisch
Phone: (+49) 30/ 2020 – 5187
Email: k.roebisch@gdv.de