We welcome the EC’s acknowledgement of the need for an overall reduction in insurers’ capital requirements.
Following the publication of the European Commission’s proposals for
the review of Solvency II, Olav Jones, deputy director general of
Insurance Europe, said:
“We welcome the EC’s acknowledgement of
the need for an overall reduction in insurers’ capital requirements.
However, only a significant and permanent reduction of capital would
allow insurers to increase their contribution to financing the recovery
and supporting the EU’s Green Deal and Capital Markets Union. This is
because insurers must take a long-term view in their strategy and
investment decisions. In addition, a significant and permanent capital
reduction would allow our industry to regain international
competitiveness. This capital reduction can be achieved while
maintaining very high levels of protection for European policyholders.
“The
steps that the EC has taken on proportionality seem positive. There
are, however, concerns that the EC’s proposals for new reporting and
group requirements include elements that would unnecessarily increase
costs and complexity. There are also significant proposals relating to
recovery and resolution and we will be looking at these carefully to
assess the degree to which these proposals are necessary and are aligned
with internationally agreed standards.
“We will continue to
assess the EC’s extensive set of proposals. However, the overall impact
will only become
clear when the EC clarifies its plans for Level 2.”Insurance Europe
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