Tight regulation yes, but right regulation, say chief executives
Geneva Association speakers have welcomed tighter solvency rules in the European insurance industry but says insurers should not be punished for bankers' misdemeanour, Reuters reports.
Geneva Association chairman and Munich Re chief executive Nikolaus von Bomhard said: "We don't have anything against regulation, even tight regulation, but it has to be right regulation. Bank taxes are strictly not for us. Including insurance wouldn't be fair or commensurate.”
The Geneva Association was founded in 1973 and includes 80 chief executives from the world's leading insurance and reinsurance companies.
Allianz’s fears
Michael Diekmann, chief executive of Allianz, said: "We need comprehensive financial regulation but let's not put the insurance and banking industries in one bucket."
Stefan Lippe, chief executive of Swiss Re, said: "Who is systemic depends on who started the avalanche and who is carrying on contributing to that avalanche. The insurance industry is rather a shock absorber.
"We absolutely think Solvency II is the right way to go," said von Bomhard. "The lessons of the crisis should be taken into the regulatory system and built into Solvency II."
Diekmann said: "There are some worries that some national interests are emerging that will lead to some kind of regulatory arbitrage geographically.”
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