British insurers’ support for Solvency II (SII) has faded over the past several years despite the sector’s progress in its implementation, according to new research from Grant Thornton UK.
The advisory firm surveyed the insurance market and discovered that from 31% in 2014, only a quarter of respondents now believe that Solvency II is clearly the best way to run their business.
While 91% think the principles of SII are appropriate, almost 70% say that the principles have been ruined by the implementation of the regime.
Two-thirds of respondents believe that SII is too complicated and that it eats up resources which could be better used elsewhere. Almost 40% also say that SII continues to distract senior management from running the business.
According to the survey, only 17% of insurers feel that SII has been worth the effort.
“The survey results, when compared to previous years, show a clear waning in support for Solvency II, despite the impressive progress made by the sector in its implementation,” said Simon Sheaf, head of general insurance actuarial and risk at Grant Thornton UK.
However, despite the increasing negativity towards the regime, Sheaf said there has been an “overall acceptance of the inevitable.”
“And insurers have had to ‘bite the bullet’ over the past few years,” he said.
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