FRANKFURT Oct 18 EU insurance watchdog EIOPA
will examine adding broad-brush measures aimed at reducing the
risk of financial crises to its capital rules for insurance
companies over the next few years, it said on Tuesday.
The EU's risk-capital rules for insurers, known as Solvency
II, came into force at the start of this year, and their
effectiveness is to be re-examined after five years.
"Our proposal is to use the 2021 overall review to integrate
in Solvency II a macro-prudential framework for insurance,"
Gabriel Bernardino, chairman of the European Insurance and
Occupational Pensions Authority (EIOPA), told an insurance
"This approach would ensure the coherence between micro- and
macro-elements, avoid the emergence of conflicting incentives to
insurers and facilitate the implementation of the regimes by the
respective authorities," Bernardino said, adding that regulators
would look at insurers' funding models and new instruments as
part of the effort.
(Reporting by Jonathan Gould; Editing by Georgina Prodhan)