|
|
The speakers touched on topics such as future of life insurance and regulatory developments in the area of pensions and insurance.
Session I: Strategic Vision - Risks and Opportunities for the Future of Life Insurance and Pensions
The panel focused on current challenges and possible strategic directions for life insurers and institutions for occupational pensions provisions (IORPs).
Among the biggest challenges participants outlined protracted low interest rate environment affecting the financial industry. It was pointed out that in case the rates remain at the same exceptionally low level for the next five years, it might “lead to terrible turmoil on the life insurance market”. EIOPA indicated that low interest rates will be a key focus of the insurance stress tests that the Authority is going to conduct in 2014.
Participants also agreed that business strategies of life insurers and IORPs should take into account such trends as demographic changes; massive transfer of wealth from savers to public sector and banks as well as competition with the long-term investment products provided by the banking sector. “It is important to develop business models without creating dead obligations that will make companies insolvent”, indicated the panel.
Panellists concluded that in future life insurers and IORPs should focus on such biometric data as mortality, longevity, life expectancy rather than to just concentrate on savings products. Another strategic direction for companies should be the increase in transparency: pure trust without any explanations will not work anymore. Customer should receive clear and comprehensive information about his individual assets on a regular basis.
Session II: Pensions – Towards an EU Framework
During the discussion a strong need for a pan-European pensions framework was noted. The panel agreed that cross-border pension schemes should be kept simple and that the single European product is not supposed to be an exclusive offer, but should go along with other products.
Session III: Solvency II - On Your Mark, Get Set, Go
The purpose of this session was to highlight the future steps towards the implementation of Solvency II. It was announced that the European Commission plans to publish the Level 2 Delegated Acts in April 2014 and to formally adopt the document in August- beginning of September 2014. EIOPA indicated that it will publicly consult on the Level 3 technical standards and guidelines as soon as possible during 2014, in order to deliver them in time for a good and timely implementation by the market. Insurance companies and supervisory authorities will use the next 2 years in order to prepare in a consistent and convergent way for the new framework in accordance with EIOPA Guidelines on Preparing for Solvency II.
Participants outlined that one of the main issues during the further implementation process will be the discussion on the long-term investments. They agreed that there should be a balance between investments in the real economy and a prudent approach.
Proportionality was named as one of the essential principles of the Solvency II application: the panel noted that the new framework should not put an administrative burden and inappropriate costs on small insurance companies.