Discord slows EU rules shake-up
Discord is dogging a shake-up of EU insurance rules, according to an FT report yesterday.
The article says “to the chagrin of national regulators and insurers, the new EU capital requirements — which will help determine insurance regulations as far afield as Bermuda — have been persistently delayed since being devised a decade ago.”
Gabriel Bernardino, who chairs the European Insurance and Occupational Pensions Authority, says the proposals provide a “reliable basis” for Solvency II to go ahead after several false starts.
“But there are early signs that Solvency II’s latest incarnation could well be the subject of the same disagreements that has blighted the project for years,” FT reported.
An unnamed head of one Europe’s biggest insurance companies is quoted as saying: “There’s absolutely no way it’ll get through like this.”
“Few regulators or insurers dispute the overarching principle of Solvency II: to safeguard policyholders, the assets insurers invest in should match the risks they take. The problem is how this works in practice,” the FT article said, noting that on top of the uncertainty about capital requirements, insurers are also facing changes to international accounting standards.