McGovern says insurers outside EU should not be complacent

CEIOPS Solvency II regulations are “penal”, according to Lloyd’s director and general counsel Sean McGovern.

Speaking at the European Insurance Forum in Dublin he said these guidelines would mean that LIoyd’s would have to double its existing capital requirement.

He said there should be more focus on the requirements of Pillar II rather than the “quantative approach” of the directive.

McGovern also warned that it was dangerous for insurers outside the EU to remain complacent about the requirements of the new directive due to be implemented in 2012.

Chairman of the Solvency II Working Group Jan Piekoszewski said the implementation date was “tough but reasonable”. He believed that some flexibility would be likely as “nobody will be 100% ready by the time 2012 rolls around."