Capital requirements for insurers should be made substantially stronger says the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).
The body made the recommendations in yesterday's third round draft advice on the rules for Solvency II, which will affect all EU insurers from October 2012, according to Watson Wyatt. The firm believes the impact on insurers will be significant. Previous estimation of capital requirements for the EU insurance industry will be upped 25% due to changing assumptions about diversification of risk, according to the firm. Life insurers and reinsurers will be hit hardest CEIOPS estimates. Graham Fulcher, UK head of non-life insurance at Watson Wyatt warns: "Reduced recognition by CEIOP...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
