Image via WikipediaInsurers ought to be given five years to fully comply with new solvency rules which are due to come into force in January 2013, Munich Re's chief financial officer said on Thursday.
"I would plea for a staggered introduction of the consequences," Joerg Schneider told reporters on the sidelines of a financial conference.
Insurance companies should be given a period of grace during which they would be required to "comply or explain" when it comes to the new rules, giving good reasons if and when they are not able to comply and a timetable for when they would be able to meet requirements, he said.
The new industry rules, known as Solvency II, which aim to better protect consumers by requiring insurers to more closely match their capital buffers with the risks on their books, are due to come into force on January 1, 2013 but many insurers are struggling to prepare for the change.
The chairman of EU insurance watchdog CEIOPS told Reuters last week that regulators were considering a shorter transition.
Karel Van Hulle, the European Commission's head of insurance and pensions unit, declined to speculate on the length of any phase-in arrangements but said insurers should not bank on a delay to the Solvency II project.
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