Only a few months ago, S-II implementation was pushed back to year end 2012. Now European regulators are hinting the new capital regulations will be phased in more slowly. Reuters:
Regulators may prove agile on timing, [top EU insurance regulator Gabriel] Bernardino said.
“What we envisage to be possible is to have some kind of transition period, where some areas can be implemented (gradually over time),” he said.
“Solvency II as a whole, as framework, we believe could and should be implemented in 2013.”
The problem, of course, is the dislocation the new standards will cause. Larger firms, in general, are well set. Smaller companies lack the capital they will need. They can rent it (reinsurance) or get new investors, the latter being problematic for mutuals, whose capital comes from policyholders.