There is an emergent divergence of opinion between trade body Insurance Europe and regulators. Will calls for further regulation create more substantial fissures?
Insurance Europe, a trade body comprised of insurance associations representing approximately 95% of European premium insurance income, recently issued a press release reaffirming its stance on EU proposals for harmonising recovery and resolution frameworks for insurers. Insurance Europe argues that proposals for substantially changing recovery and resolution rules for insurers are unnecessary. Rather, it asserts, current safeguards provided under Solvency II (a European framework governing capital adequacy and risk reduction for insurers) are sufficient. Insurance Europe’s announcement was borne out of a discussion paper from the European Insurance and Occupational Pensions Authority (“EIOPA”), in which it considered harmonising national recovery and resolution frameworks for insurers in the EU. EIOPA suggested “minimised harmonisation” whereby EU member states would be enabled to implement new regulatory measures to their respective insurance markets. Click here for more details of the EIOPA proposals and Insurance Europe’s response.