Insurance Europe has expressed disappointment over provisions relating to long-term guarantees in the Omnibus II Directive approved by the European Parliament's economic and monetary affairs committee this week. It nevertheless recognises that they will make it possible for the European Parliament, Council and Commission to engage in trialogue discussions on this crucial issue.
"We urge the negotiators that will now take part in the trialogue discussions in the European Parliament, Council and Commission to ensure that insurers can continue to provide complementary pensions and other retirement savings products at a reasonable price for consumers," said Michaela Koller, director general.
The ABI comments "The measures agreedin the ECON committee of the European Parliament are far from perfect but pave the way for a constructive discussion in the next phase of negotiations on Solvency II. We urge the Finance Ministers, the European Parliament and the European Commission to work together in the weeks to come to address the outstanding issues.
It must remain possible for insurers to continue to deliver products with long term guarantees that are attractive to consumers. These are products that people rely on for their income in retirement.
Linked to this is the ability of insurers to contribute across Europe to helping governments drive economic growth post the financial crisis, a challenge which we in the industry are keen to meet, if regulation allows.
The final text must not constrain European insurers from competing successfully in the global market. The issue of equivalence must be resolved in order for the EU insurance industry to remain competitive and this will be an issue for which we, and our European counterparts, must seek a successful regulatory outcome."
Speaking to delegates at the inaugural Insurance Strategy Europe event, Daniela Rode, director of regulation at EIOPA said "Solvency II is a long process like a train journey, we did some tests and sent it to countries to see if it goes on their tracks. But it seems to have lost some of its speed. The ECON vote shows we are still going in the right direction. In April trials will start and EON said the 2013 deadline is still the aim.
There is a new spirit and momentum has been regained. New instruments have been introduced regarding volatility and counter cyclical premium. Discounted rates can also be adapted when the financial market is stressed, although definition is needed here."
The former New York Superintendent of Insurance, James Wrynn who left the role last month, said the transatlantic market could be destabilised if the US Solvency II equivalency issue is not resolved soon.
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