The FSA is expected to agree to the industry’s request this week after discussions with the Association of British Insurers and the Lloyd’s of London insurance market, the Financial Times reports.
The aim is to stop UK insurers having to run their old capital assessment models alongside the new models developed for the incoming Solvency II regime, when they perform their triennial Individual Capital Adequacy Standards assessment in 2013. This is a regulatory task unique to the UK.
Solvency II was supposed to come into force at the end of next year but is now likely to be pushed back to 2014 because of concerns over the preparedness of some companies and regulators across Europe.
However, Sean McGovern, Lloyd’s general counsel, told the Financial Times the UK market did not want a delay and was confident it would be ready for a 2013 start.
“Given the significant time and money invested in building our internal model we just want to get on and use it, not mothball it for a year,” he said.
“While everyone knows there will be a delay the FSA is keeping the momentum up by pressing the industry to continue to work towards a 2013 implementation.
“We support that and would support any move by the FSA to move from the current ICAS system to Solvency II ahead of the 2014 date.”
