Insurers are concerned that capital requirements and balance sheet volatility in the forthcoming Solvency II regulation do not make it more expensive for insurers to invest in long-term assets. President of Insurance Europe, Sergio Balbinot, said: “In the wave of regulatory reforms currently facing the European insurance industry, it is therefore vital that any changes do not jeopardise insurers’ ability to provide this much-needed long-term financing and stability to the economy. Europe’s renewed economic growth depends on it.”
Jürgen R Thumann, President of BUSINESSEUROPE, agreed. “Europe needs a regulatory framework that is much more supportive of both the development and financing of long-term investment projects in areas such as energy, innovation and infrastructure”, he said.
Joanne Segars is Chair of PensionsEurope and, like the EVCA, is concerned that proposed revisions to the IORP Directive could lead to Solvency II style regulation being applied to workplace pensions. That would mean less capital being allocating to long-term ventures. She said: “We are particularly encouraged by the explicit recognition [in the Green Paper] that the new EU pensions directive should not discourage sustainable long-term financing".
Full press release
© EVCA - The European Private Equity & Venture Capital Association
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