LONDON – The use of supervisory colleges to bring together member state regulators in closer supervision of cross-border insurance and reinsurance groups is the key proposal of a new paper from the UK Treasury and Financial Services Authority (FSA) regarding Solvency II implementation.
The report contains a number of proposals aimed at encouraging better supervision across European Union insurance groups and reducing administrative burdens. It represents the UK’s contribution to the development of the EU’s Solvency II insurance directive.
Colleges of supervisors are endorsed by the UK Chancellor of the Exchequer Alastair Darling and featured prominently in last month’s Ecofin council recommendations for a supervisory solution for cross-border banks.
The Treasury said its proposals mark a continuation of UK advocacy of a risk-based approach to EU financial regulation, contributing to increasing modernisation and competition for the insurance sector.