New German bill breaches EU law, say foreign insurers


Foreign insurance firms operating out of Germany have raised concerns that the justice ministry's latest attempt to rewrite insurance contract law contravenes European legislation on the freedom to provide services, by forcing a change in asset structure to back guaranteed surrender values. This latest attack comes close on the heels of separate industry worries that the new changes could only work if the government simultaneously updated solvency rules (see Life & Pensions, November 2006, p8).


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