‘Fairness not part of Solvency II’ – Danish regulator

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

jan-parner-finanstilsynet

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.

"Fairness