CEA director general, Michaela Koller, has warned of a considerable adverse impact on consumers if a number of key issues in the development of the new Solvency II regulatory regime for insurers are not addressed.
Speaking on a consumer protection panel at the Annual Conference of the European Insurance and Occupational Pensions Authority (EIOPA), Koller outlined the detrimental effect on consumers if insurers are required to hold unnecessarily high capital levels under the new regime.
Long-term guarantee products that are very popular — particularly during periods of financial turmoil — could become unviable at acceptable prices, warned Koller at the 16 November EIOPA conference. Overly conservative capital requirements for insurers could translate into increased prices and a more limited choice of products for consumers, just when they most need insurance.
The CEA is continuing to provide technical feedback to the European Commission and, now, to members of the European Parliament as the final discussions take place on the implementing measures for Solvency II.
Press release
© CEA - Comité Européen des Assurances
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