In a letter seen by the Financial Times, Michel Barnier, EU internal market commissioner, has told four leading insurance industry bodies that “criticisms levied against Solvency II, particularly that calibrations are too high, have not been confirmed by evidence”.

Mr Barnier points out that tests have shown that the industry overall has a buffer of €360bn ($527bn) more than the new regime’s capital targets, and €676bn more than the required minimum capital – a level which, he says, exceeds the margin under the current regime.

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