UK insurance companies not in line with Solvency II requirements

Accountancy Moore Stephens has warned that some existing internal business models in the UK insurance industry may not be in line with standards required under Solvency II, the EU project to create a system of risk-based prudential regulation in the insurance sector.

Simon Gallagher, head of the Moore Stephens industry group, said: "Insurers face a variety of challenges in achieving Solvency II compliance, some of them entirely new to the industry. But the biggest challenge is likely to revolve around the development of compliant internal capital models, or the customisation of existing models and - most importantly - the embedding of those models into day-to-day business practices."

Writing in the Moore Stephens newsletter Insured Interest, Mr Gallagher