Europe's insurers spent as much as €9bn keeping pace with a barrage of regulatory changes imposed on the industry in the years following the financial crisis, according to a report by Deloitte.
Directives such as Solvency II, which requires European Union (EU) insurance companies to hold more capital, and FATCA, a US initiative obliging institutions to disclose their American clients, cost the 40 largest businesses some €200m each, the report found. This left insurers "stretched, uncertain and requiring new capabilities", said Deloitte insurance partner Francesco Nagari. He added that costs are expected to continue at current levels until at least 2015, but warned that "the challenges are not simply about headline cost". "Many insurers are adopting a wait and see approach...
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