Cross-border regulation of insurers under threat today
Insurers fear EU proposals for cross-border insurers to have a single regulatory regime under Solvency II proposals could be watered down today.
The ABI confirmed to Insurance Times this morning that it was concerned about the threat to Solvency II and had sent an urgent letter to Lord Myners, City minister at the UK Treasury, warning that there was a risk of a "worst of all worlds" outcome.
The ABI letter says: "As a complete negation of the move to cross-border supervision by colleges (of supervisors) that was key to the G20 discussions in Washington DC last weekend, there seems an acceptance by some member states of a limited traditional regulatory system, circumscribed by national solo supervision.”
The move follows a similar plea from the ABI’s European equivalent the CEA to the French presidency of the EU.
The CEA (the European insurance and reinsurance federation), the CFO Forum, the CRO Forum and PEIF (the Pan-European Insurance Forum) have written jointly. “The group support regime will lead to a much improved oversight of the total risk of the group compared to the current situation and will increase the likelihood that group supervisors and the relevant local supervisors will have the competences in order to be able to react to issues early,” it said
