U.K. insurers' confidence low in preparation for Solvency II
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LONDON—Less than half of U.K. insurers are confident that the insurance industry will be ready for the Jan. 1, 2013, deadline for compliance with Solvency II, according to a Deloitte L.L.P. study.
Only 46% of U.K. insurers studied by Deloitte this year said they were “confident” or “very confident” that the industry would be ready for Solvency II, the risk-based capital regulatory regime for insurers and reinsurers in the European Union, when it comes into force in 2013.
In a similar study conducted last year, 63% of U.K. insurers expressed confidence that the industry would be ready in time for Solvency II's introduction, according to Deloitte.
Individual insurers ‘confident'
But almost three-quarters, 73% of the 60 insurers questioned this year said they were “confident” or “very confident” that their own company will be ready for Solvency II.
Almost half, 47%, of the U.K. insurers questioned said they believed they might need to restructure in order to comply with Solvency II, while 65% said they expect to introduce new risk mitigation techniques to adapt to the upcoming regulatory change.
The study was conducted by the Economist Intelligence Unit on behalf of Deloitte in London.
