European insurers’/reinsurers’ federation will oppose supervisors’ capital proposals at a European Parliament meeting today.
The CEA, the European insurance and reinsurance federation, will explain its opposition to the capital requirements currently proposed for the forthcoming Solvency II legislation in the European Union.
Members of the CEA will speak at a workshop in the European Parliament alongside members of CEIOPS, the Committee of European Insurance and Occupational Pensions Supervisors, which has proposed much higher capital requirements for insurers.
In a report, CEIOPS suggested increasing insurers’ capital by 30 to 50%. Solvency II is set to become the regulatory framework for the insurance industry across the European Union in 2012.
Insurers have complained that such “excessive” capital requirements will not necessarily bring better security particularly for catastrophe risks, but will have an impact on premium costs, which they said would rise by up to 50% for certain lines of business, while also affecting product availability.
The CEA has compiled a 40-page report, ‘Why excessive capital requirements harm consumers, insurers and the economy’.