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Following the publication of the European Commission’s proposals for the review of Solvency II, Olav Jones, deputy director general of Insurance Europe, said:
“We welcome the EC’s acknowledgement of the need for an overall reduction in insurers’ capital requirements. However, only a significant and permanent reduction of capital would allow insurers to increase their contribution to financing the recovery and supporting the EU’s Green Deal and Capital Markets Union. This is because insurers must take a long-term view in their strategy and investment decisions. In addition, a significant and permanent capital reduction would allow our industry to regain international competitiveness. This capital reduction can be achieved while maintaining very high levels of protection for European policyholders.
“The
steps that the EC has taken on proportionality seem positive. There
are, however, concerns that the EC’s proposals for new reporting and
group requirements include elements that would unnecessarily increase
costs and complexity. There are also significant proposals relating to
recovery and resolution and we will be looking at these carefully to
assess the degree to which these proposals are necessary and are aligned
with internationally agreed standards.