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The purely voluntary co-operation between national supervisors has not made it possible to go beyond an exchange of information and achieve effective supervisory co-operation, Michaela Koller, director general of the CEA criticized.
“All national supervisors should therefore have an interest in supporting the establishment of a well thought-out and integrated supervisory system” she said and underlined that group supervision needs to take a more participative approach in line with economic reality.
Solvency II provides a logical response to some of the topical questions that are currently raised, such as how co-operation between (insurance) supervisors can be achieved effectively with a view to the common risk assessment and analysis of the prudential position of large EU or global groups, the CEA says.
Solvency II provides for a clear allocation of supervisory responsibilities that forms the basis of a new system under which supervisors can work together, CEA notes. National supervisors will remain responsible for the fundamental aspects of supervision and will also benefit from mutual information-sharing leading to a better understanding of the financial position and risk profile of an insurance group.