Monday May 21st 2012
The end for Solvency II?
The old saying of "can you really believe what you read in the press?" has been tested this week. The Financial Times ran a story quoting sources which said Solvency II will be delayed for 12 months.
Not so said the Euroepan Commissioner, however the market believes otherwise and while there is no smoke without fire just how big a blow would any delay be?
There is a growing school of thought that this is the death knell for Solvency II. This is the delay after the delay after the delay which will see the industry decide they will no longer invest the millions chasing a regulatory regime which is now a further year way.
Lloyd's has said the three year Solvency II preparations will have cost them £250 million and that means it has cost the syndicates that collective figure - it makes the failed Kinnect initiative's £70 million look surprisingly small.
At what point will the industry down tools and say enough is enough - no more work till the date and the regulations are set in stone?
Given the complexity of trying to be all things to all of Europe's regulators and underwriters will that day ever arrive?