Uncertainty surrounds future of Solvency II

Insurance regulation cannot escape the fallout from the current financial crisis

The future of the Solvency II project is under review in the wake of the current turmoil that has undermined banking industry regulation. Political negotiations have come a long way but with the framework directive still in the hands of the European Parliament, it looks unlikely that the text will be adopted by the end of this year as planned. The directive is not expected to go too far off schedule, and political agreement is now expected to be secured during the early stages of 2009.