Insurance Europe, a lobby group representing most European
insurers and reinsurers, Wednesday called for a "realistic new
time-table" for implementing Solvency II, Europe's planned
requirements for the industry in terms of capital, risk management
and reporting.
The implementation of the regime, currently envisaged to start
Jan. 1, 2014, will likely be delayed by about two years, but no new
time-table has been worked out by European Union legislators.
MAIN FACTS:
-It is important that momentum isn't lost in implementing
Solvency II and a realistic new timetable is needed so that
companies and legislators can plan ahead, said Sergio Balbinot,
president of Insurance Europe.
-Any revised timetable must, however, be workable. Adequate time
must be allowed for the legislative process, followed by sufficient
time for companies to prepare for the new regime, which includes
over 60 new templates for companies' annual reporting to
supervisors.
-Insurance Europe is calling for the right alternative solutions
for long-term guarantees to be tested in the impact assessment that
the European insurance regulator, EIOPA, is due to begin
shortly.
-"The appropriate measures need to be put in place to reflect
the fact that - due to their long-term liability profiles -
insurers tend to hold assets to maturity and are not forced sellers
of assets in volatile markets," Balbinot said.
-The insurance industry is pleased that the European Parliament,
Council and Commission have agreed to the need for a package of
measures to solve the problems related to long-term guarantees.
-If appropriately designed, this package would ensure that
Solvency II correctly measures risks, including the crucial
characteristics arising from the long-term nature of insurance.
-The European insurance industry supports the Solvency II
project, provided the outstanding issues are satisfactorily
resolved.
-Insurance Europe represents insurers that account for around
95% of total European premium income. European insurers generate
premium income of almost EUR1.1 trillion, employ nearly 1 million
people and invest around EUR7.7 trillion in the economy.
-Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com
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