‘Fairness not part of Solvency II’ – Danish regulator

Directive ignores risk of intergenerational subsidy, says Finanstilsynet's Parner


Europe's Solvency II directive could lead to the unfair treatment of some younger policyholders if low interest rates persist, according to a senior Danish regulator.

The directive's approach to discounting liabilities increases the risk of younger policyholders being forced to subsidise the policy guarantees of previous generations, Jan Parner, deputy director-general at Denmark's financial regulator Finanstilsynet, said at the Insurance Risk Nordics conference in Stockholm on June 4.