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4/5/11

European insurers see 'dire' impact of capital rules - by Myles Neligan

Europe's proposed Solvency II capital rules for insurers could have dire consequences for the sector, making it more vulnerable to economic downturns and forcing it to charge higher prices, insurers said on Monday.

The current overly conservative approach would also usher in a less predictable regulatory environment and hold back the industry's growth, four lobby groups said in a letter to European Internal Market Commissioner Michel Barnier.

'Stakes are high and time is running out,' the CEA, PEIF, CFO Forum and CRO Forum said. 'A failure to properly implement this reform would have dire consequences for an industry that represents a significant component of the EU economy, capital markets, old-age savings and jobs.'

Note EU-Digest: insurers are worried mainly because they fear stricter controls on what used to be their free for all environment.

For more: UPDATE 1-European insurers see 'dire' impact of capital rules - Finance News - London South East

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