An analysis of the 39 insurance principals by KPMG in Malta has highlighted numerous gaps in the reporting requirements which will come into force in 2016.

KPMG compared the qualitative public disclosures presented under the current Solvency I regime with the future requirements under Solvency II.

In terms of the requirements of the business and performance section of the Solvency Financial Condition Report (SFCR), only around 13 per cent of the assessed entities include comprehensive details on subsidiaries and the rest fail to include details on the group shareholding structure and/or a group structure chart to the extent required by Solvency II.

“Solvency II is certainly top-most priority on insurers’ agenda as we enter the interim phase leading towards day-one compliance,” KPMG’s senior manager Diane Bugeja said.

“This is a critical period for the industry since undertakings must juggle their business needs with compliance efforts,” she said, adding that market disclosure was likely to have a major impact on how the marketplace forms an opinion about the insurer’s present and future business performance, risk and capital profile.

The Solvency II Directive will come into force on January 1, 2016, aimed at achieving a level playing field across the EU for insurance players in the market.