EU capital rules treat insurers like traders
Wednesday, 02 01 2017, Category: Insurance and Reinsurance, Country: Europe
New European Union capital rules treat insurers like traders making risky short-term bets and require them to set aside too much capital, trade body Insurance Europe said on Wednesday.
Fifteen years in the making, the Solvency II regulations came into force in Europe in January 2016 with the aim of ensuring that companies have enough capital to cover underwriting, investment and operational risk.
British insurers Prudential and Legal & General have complained that the rules make it harder for them to compete with insurers globally.