Some 82 per cent of respondents to a survey by Grant Thornton now believe that the principles of Solvency II have been ‘ruined' by its implementation, while 89 per cent believe that it is ‘too complicated' as currently envisaged. The survey of senior executives in the non-life insurance sector also revealed that only one in four believe that Solvency II is the most appropriate way to run their business.
Simon Sheaf, general insurance practice leader at Grant Thornton UK, commented: "It is clear that the perceived problems with Solvency II are with the implementation since, although 99 per cent of respondents thought that the principles behind the new regime were good, 82 per cent felt that those principles had been ruined by the complexity of the implementation.
"Regulators and supporters of Solvency II should be very concerned by the market's reaction and it is vital that they now effectively promote the benefits of the new regime and persuade the market of its usefulness.
"With this level of negativity and the latest significant delay to implementation, it would be all too easy for insurers to take the opportunity to halt their preparations. However, we would caution against this.
"If insurers lose momentum at this stage, it is going to be far more difficult and far more costly for them to pick up the pace later."
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