While a major impediment to implementing Solvency II has been resolved, allowing the already-delayed insurer regulatory regime to go into effect in January 2016, experts warn that the latest start date may still be a bit ambitious.

At the same time, a rating agency said delaying Solvency II beyond 2016 could pose a financial burden on insurers doing business in the European Union.

In a November accord, the European Commission, European Council and European Parliament agreed on the treatment of life insurers' long-term guarantees under Solvency II — one of the biggest outstanding sticking points — and set the start of 2016 to implement the rules.

The European Parliament followed with a vote in favor of the 2016 start date for the capital regulatory rules, which several insurers and insurance groups lauded.

“We welcome this agreement as a major step forwards in the progress of Solvency II. We fully support the objectives of Solvency II in introducing an economic-risk-based regulatory framework that incentivizes risk management and harmonizes supervision,” said Nick Kitching, London-based head of European regulatory affairs at Swiss Re Ltd. “The conclusion of these important discussions should now clear the way for a full start of Solvency II in January 2016.”

Hugh Savill, director of regulation at the London-based Association of British Insurers, said the organization was “relieved” that an agreement had been reached and that the industry now could move forward in preparing for the new rules.

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Allianz S.E. also welcomed the agreement.

“I am convinced that with Solvency II, the European Union will get one of the most advanced regulatory regimes in the world,” Allianz Chief Financial Officer Dieter Wemmer said in a statement. “This will benefit both insurers and their stakeholders.”

Gabriel Bernardino, chairman of the European Insurance and Occupational Pensions Authority, said the European regulator also welcomed the agreement.

Clarity about the Solvency II timetable has been “long-awaited and will certainly contribute to the strengthening of insurance supervision in Europe,” he said.

While Insurance Europe, which represents insurers and reinsurers in Europe, also welcomed the Solvency II start date, “the timetable is very ambitious, giving insurers little time to adapt their business processes,” it said.

Janine Hawes, insurance director at KPMG L.L.P. in London, agreed. The 2016 start date “marks a significant step in the Solvency II journey,” she said, but “the timeframe remains tight.”

Agreement still must be reached on certain technical elements of the rules, which Ms. Hawes said could be delayed by the May 2014 European Parliament elections. The outcome of the parliamentary election could delay the progress of Solvency II, experts say.

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In a report, rating agency A.M. Best Co. Inc. said delaying Solvency II past 2016 would add to insurers' financial burden.

There has been a degree of “Solvency II fatigue” in the market, and progress on the new capital rules has been “fraught with delays,” the rating agency said. “This has been a source of frustration for the insurance industry with delays resulting in additional costs and companies being required to dedicate staff to prepare for a moving target.”

“A.M. Best believes it is imperative that the momentum continues with Solvency II and that further delays in its implementation would be detrimental to the insurance industry,” it said.

Areas that still need to be resolved include “level two implementing measures,” said Asesh Sarkar, insurance expert at PA Consulting Group Ltd. in London.

Implementing measures are the mechanisms by which the Solvency II directive will be adapted into nation states' rules. But any further delays likely would be “not material,” Mr. Sarkar said.

Many insurers also must get ready for the rules' Pillar III reporting requirements, he said of a recent survey of 20 U.K. insurers.

“Overall, there is a good probability that the timetable will be met,” and most insurers are confidence that they will be ready in time, Mr. Sarkar said.