BELGRADE (Serbia), March 16 (SeeNews) – Serbia's central bank, NBS, said on Friday it postponed the deadline for the implementation of the EU Solvency II Directive for the insurance sector to 2021 from the end of 2018.
The central bank adopted amendments to its strategy for the implementation of the EU Solvency II Directive, in order to assess the readiness of insurers to apply the new rules, NBS said in a statement.
The deadline for completing the drafting of rules necessary for the establishment of the new regulatory framework for insurance and reinsurance companies, part of the third phase of the Strategy, were postponed to the end of 2021.The central bank also amended the plan for activities under the second phase of the strategy, during which several quantitative impact studies will be conducted in the period from 2018 to 2021.
NBS said it will intensify its cooperation with the Ministry of Finance, the Association of Insurers of Serbia, the Association of Actuaries of Serbia and other stakeholders, in order to define the best solutions for the implementation of Solvency II rules.
The central bank completed in April 2017 the first stage of implementation of the strategy, including the assessment of the compliance of the national insurance legislation with Solvency II rules.
Stage II – Impact assessment and Stage III – Harmonisation of the regulatory framework were initially scheduled for completion in the first half of 2018 and the end of 2018, respectively.
The Solvency II Directive is a EU law that codifies and harmonises the insurance regulation in the bloc. Primarily this concerns the amount of capital that EU insurance companies must hold to reduce the risk of insolvency.