CEA ‘delighted’ with approval for insurance industry directive

The CEA has said it is delighted that the European Parliament has approved the proposed Solvency II Framework Directive.

“We welcome the vote and thank the Parliament for its hard work in ensuring that an enhanced regulatory regime for Europe’s insurers will become reality,” said Michaela Koller, CEA director general.

The Parliament’s vote follows the endorsement of the text of the directive by the Committee of Permanent Representatives (Coreper) on 1st April. Formal adoption of the Framework Directive is expected at the 5 May Economic and Financial Affairs (ECOFIN) Council.

The vote was also welcomed by London market professional. Karl Murphy, a partner at actuarial firm EMB, said the vote “puts Solvency II firmly back on track”.

“This removes any lingering uncertainties for companies about the need to get on with their preparations,” Murphy said.

However, he warned that companies “need to have an action plan” because implementation is already well underway.

“The fact is that while the political debate about the final wording has been taking place, other organisations, CEIOPS in particular, have been getting on with the job of making sure that Solvency II gets implemented according to the timetable. Organisations that are planning to seek approval for an internal model have the greatest need for a concerted action plan.”