25 Nov 2008, David Benyon , Operational Risk & Regulation
BRUSSELS - The European Insurance and Reinsurance Federation (CEA) has voiced its disapproval over the new Solvency II proposal from European Union president Nicolas Sarkozy. He is accused of "carving out" all mention of the group support regime from the draft Solvency II framework directive sent for the approval of the Council of Economic and Finance Ministers on December 2, 2008.
The CEA expressed its disappointment at the Committee of European Insurance and Pensions Supervisors' (Ceiops) fourth annual conference on November 19 in Frankfurt. It will come as a blow to Ceiops, which at the same conference expressed its satisfaction at the completion of the directive's fourth Quantitative Impact Study industry exercise.
Representatives from the insurance industry, the European Commission and the European Parliament also expressed their support for the inclusion of Solvency II's group support regime. The regime takes into account the fact most European insurance providers are part of groups active across national borders in the allocation and management of group-wide economic risk-based regulatory capital.
The European Commission has warned that Solvency II implementation is already likely to be delayed into early 2013 and that failure to reach an agreement on group support will only add to that delay.
"While noting the concerns of some solo supervisors, the European insurance industry believes the future Solvency II regime must be able to identify the consolidated exposures of insurance groups and that supervisors should be able to act in co-operation," says CEA president Tommy Persson.
The CEA's press release can be downloaded here.
http://www.cea.eu/uploads/Articles/documents/081120 SII EU Council.pdf