CEA seeks consultation on applying Solvency II principles to IORPs
20 January 2011
As things stand, when insurers move to the sophisticated new Solvency II regime, the institutions for occupational retirement provision that are currently subject to the same regulation as insurers — Solvency I — will continue to be regulated under that older and somewhat cruder system.
The current regulatory level playing field will cease to exist, meaning that customers whose pensions are with institutions for occupational retirement provision (IORPs) or with mutual funds offering guaranteed benefits will not benefit from the enhanced protection that will be afforded by Solvency II.
The CEA, the European insurance and reinsurance federation, calls on the European Commission to tackle the confusing inconsistencies that could arise in the regulation applicable to EU pension providers. It believes that the principle of “same risks, same rules” should be applied to the regulations covering life insurers, IORPs and mutual funds offering guaranteed benefits.
“The Solvency II principles are appropriate for pension funds, provided the economic features of all pension products or schemes are taken into consideration,” said Michaela Koller, director general of the CEA.
The CEA therefore calls on the EC to urgently carry out consultations and an impact assessment on the application of Solvency II-type, risk-based principles to IORPs.
© CEA - Comité Européen des Assurances
