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Speaking at a conference organised by the German insurance federation GDV this week, Mr Van Hulle told German insurers that if they do not meet the regime’s Solvency Capital Requirement they will be invited for a ‘cup of coffee’ with BaFin, the country’s financial watchdog. “But, if you don't meet the Minimum Capital Requirement, stronger stuff will be needed”, he added.
Not fulfilling the Minimum Capital Requirement will mean that a company is broke, that the management has to go and an administrator, appointed by the supervisor, will be brought in.
Four days earlier, Mr Van Hulle was equally outspoken in Bonn, where BaFin held its Solvency II conference. “The idea is simple: insurers have to stand naked in front of the supervisors. In front of the public they can wear swimming trunks and we decide how big they ought to be.”