European Insurance Authority Chief Pledges No Slippage on Solvency II
|Copyright:||(c) 2011 A.M. Best Company, Inc.|
|Source:||A.M. Best Company, Inc.|
Despite rumors of a possible delay, the
"We are still sticking to
"Changes are coming," said Montalvo, who is executive director of the
Solvency II will seek to create a uniform capital adequacy structure for insurers and reinsurers throughout the 27-member
Solvency II will be implemented in a way that provides a "transition from the current regime to the new regime," Montalvo said.
EIOPA draws its membership from the supervisory bodies in the EU member states. "Solvency II at the end will be good for them," Montalvo said. "So there is a good reason to be ready."
The goal of regulation is "competitiveness and financial stability," Montalvo said.
Montalvo noted that different EU member countries have taken different approaches to regulation. "I have seen them all," he said. "None of them have proved to be the perfect one. All have upsides and downsides. But all systems are workable. "
Montalvo said he is confident that the insurance industry across
As the implementation date nears, the uncertainties will grow, as will concern about the negatives. "There are challenges," Montalvo said. "There are risks. But there are opportunities and benefits."
Five years after Solvency II takes effect the European insurance industry is likely to benefit from better risk management, more transparency and an enhanced role for EIOPA, he said.
The effective removal of national borders and the introduction of a single currency throughout much of the EU have brought sharp reductions in the costs of doing business, Booth said. "And the thought of this all disappearing is pretty horrible."
Booth said the diversification of the insurance industry contributed to the sector's favorable performance during the financial crisis. Insurers continued to pay claims, he said.
"Insurance has been over many years the oil in the engine of industry, and we can help to drive the recovery in future," Booth said.
Booth quoted a German proverb: "'Fear makes the wolf bigger than he is.'"
Thoresen said he has spent time in
Thoresen called on the
"The more cohesive we are as an industry the more effective we can be as a lobbying force in the
Booth called for stronger efforts to encourage insurers to keep their domiciles in the