Following the debate on a pan-European system for regulating the reinsurance industry yesterday the European Parliament adopted the report prepared by Mr Skinner today. The Parliament adopted a number of amendments to the Commission's draft, but was generally supportive of the principles involved.
While many of the amendments are technical clarifications and improvements, one key issue was the Commission proposal that solvency requirements for life reinsurance should be more stringent than for non-life reinsurance. Parliament amended the text in a way that the solvency margin rules should, in general, be the same.
It also proposed to alter the rules under which insurance companies who also offer reinsurance services would be subject to the solvency rules applied to reinsurance companies. This would apply where the reinsurance premiums collected exceed 10% of their total premium; or where the reinsurance premiums collected exceed EUR 50,000,000; or where the technical provisions resulting from their reinsurance acceptances exceed 10% of their total technical provisions.
The measure is likely to be adopted at first reading stage.
Commission press release
© European Parliament
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