Nine in 10 senior financial services executives expect the implementation of Solvency II  to push insurers to axe non-profitable products, according to a survey by interim management staffing specialist Interim Partners.

The research also shows 73% of interim managers predict an increase in consolidation within the insurance market as a result of Solvency II.

Andrew McIntee, director of financial services at Interim Partners, says: “Solvency II could significantly push up the cost of some business lines for insurers.

“If insurers are forced into exiting lines of business en masse, that is bad news for consumers because it will reduce competition and choice.”

Full implementation of Solvency II, which provides EU-wide capital requirements and risk management standards to replace the current solvency requirements, is expected to take place on January 1 2014, but it is anticipated insurers will need to provide national regulators with their Solvency II implementation plans by mid-2013.