Europe's insurers finally move towards agreeing new capital rules

Thirteen years of wrangling and lobbying came to head today as Europe's insurers finally moved within sight of agreeing controversial new capital rules.

Policymakers from the European Parliament and European Union said they had reached common group on the Solvency II proposals, which have been drawn up to protect consumers across the region.

The rules have polarised opinion in the 28-member bloc with companies such as Legal & General and Prudential warning they were too onerous in their original form. Lawmakers are understood to have taken this on board and watered down their proposals, which now look likely to be introduced in 2016.

Hugh Savill, director of regulation at the Association of British Insurers, said: "We are relieved that a deal for Solvency II has been finalised following intense discussions. The outcome is by no means perfect but we now have a solid basis for the industry to move forward and to prepare for the entry into force in 2016. The commission should now consult on the full implementation measures as soon as possible."