With less then two years to go before the planned implementation calls have been made for the European Commission which is master minding Solvency II to  create a more streamlined process for the international models.

There is a growing concern over the ability of regulators to assess and approve internal solvency models in time for the 1 January 2013 deadline for the implementation of the new solvency regime across the European Union.

Those underwriters who fail to have internal models authorised will be faced with the imposition of a standard capital models which many say will leave them at an almost terminal disadvantage to those with internal model approval.

Aon Benfield this month called for a simplified Internal Model Approval Process (IMAP) for natural catastrophe risk that would encourage insurers to better quantify these exposures under Solvency II.

The broker has said it will be lobbying the European Insurance and Occupational Pensions Authority (EIOPA) for a change to the current process, which would allow more re/insurers to realize the benefits of a partial internal model for nat cats.

Paul Miller, head of international catastrophe management at Aon Benfield Analytics, said: “The use of CRESTA zone data in exposure calculations was common 15 years ago, but now most insurers and reinsurers use far more detailed data. The Solvency II Standard Formula does not recognize this evolution so re/insurers receive a higher risk profile and more onerous capital requirements. Our new proposal to EIOPA allows for effective risk management and more appropriate choices for reinsurance strategies.”

The proposal is in line with the request from the European Commission to EIOPA to simplify the Solvency II requirements, which say Aon Benfield could lead to “a win-win situation for regulators and the industry”.