- Story by: Dominic Welling
- Magazine: FTAdviser
- Published Wednesday , November 11, 2009
Solvency II aims to provide a comprehensive new framework for insurance supervision and regulation across the EU.
The target is to create a more sophisticated, risk-based approach to supervision and capital assessment, using modern techniques for market-based valuation of assets and liabilities.
It was agreed in May 2009 and the ABI continues to support its aims and principles.
However, in the new stage two of the directive, a large number of significant, but detailed, issues remain to be settled in the implementing legislation, according to the ABI.
This process is at an early stage, and CEIOPS, the committee of insurance regulators from across the EU, is currently consulting on their its advice to the commission.
According to the ABI, the European regulators have taken an unnecessarily conservative approach to implementing the directive in the consultation papers released in the summer.
It said the directive represents regulatory overkill and an unsustainably cautious position, and is a knee-jerk reaction by Europe's regulators to the financial crisis.
The ABI said some of the proposals go further than those designed for the banking sector, which it considers "bizarre given that the insurance industry has weathered the worst financial crisis in 80 years."
Peter Vipond, director of financial regulation at the ABI, said: "There is still much to do to deliver a successful outcome for Solvency II. However, the positive message is that CEIOPS has recognised that some of their original ideas were unsuitable, as insurers across Europe made clear.
"The challenge remains to shape Solvency II, allowing it to deliver its original aim of prudentially sound firms with consumers’ interest paramount.
"It is pleasing that CEIOPS has recognised that the liquidity premium must be included, although it has restricted this to business-in-force.
"More progress is needed here and we will continue our efforts to find a suitable solution. The commission will now produce its implementation proposals at the end of 2010."
http://www.ftadviser.com/FTAdviser/Insurance/News/article/20091111/7955d0aa-ced4-11de-9040-00144f2af8e8/ABI-calls-for-more-progress-to-be-made-on-the-Solvency-II-Directive.jsp
The target is to create a more sophisticated, risk-based approach to supervision and capital assessment, using modern techniques for market-based valuation of assets and liabilities.
It was agreed in May 2009 and the ABI continues to support its aims and principles.
However, in the new stage two of the directive, a large number of significant, but detailed, issues remain to be settled in the implementing legislation, according to the ABI.
This process is at an early stage, and CEIOPS, the committee of insurance regulators from across the EU, is currently consulting on their its advice to the commission.
According to the ABI, the European regulators have taken an unnecessarily conservative approach to implementing the directive in the consultation papers released in the summer.
It said the directive represents regulatory overkill and an unsustainably cautious position, and is a knee-jerk reaction by Europe's regulators to the financial crisis.
The ABI said some of the proposals go further than those designed for the banking sector, which it considers "bizarre given that the insurance industry has weathered the worst financial crisis in 80 years."
Peter Vipond, director of financial regulation at the ABI, said: "There is still much to do to deliver a successful outcome for Solvency II. However, the positive message is that CEIOPS has recognised that some of their original ideas were unsuitable, as insurers across Europe made clear.
"The challenge remains to shape Solvency II, allowing it to deliver its original aim of prudentially sound firms with consumers’ interest paramount.
"It is pleasing that CEIOPS has recognised that the liquidity premium must be included, although it has restricted this to business-in-force.
"More progress is needed here and we will continue our efforts to find a suitable solution. The commission will now produce its implementation proposals at the end of 2010."
http://www.ftadviser.com/FTAdviser/Insurance/News/article/20091111/7955d0aa-ced4-11de-9040-00144f2af8e8/ABI-calls-for-more-progress-to-be-made-on-the-Solvency-II-Directive.jsp
Aucun commentaire:
Enregistrer un commentaire