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Regulators’ stance on Solvency II capital thaws

17 December 2009

Following the December 11 deadline for the insurance industry to give feedback on Ceiops’s third wave of consultation on Solvency II, European insurers still have reservations about the new regime.

Read more: Solvency II Ceiops Thomas Hess European Commission Comité Européen des Assurances ABI

On December 11 2009, the insurance industry had its last chance to respond to advice from the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops) on the implementation of Solvency II.The previous round of consultation papers from Ceiops had prompted a fierce backlash from the insurance industry. In a letter to UK Chancellor Alistair Darling, published in The Times in September 2009, Stephen Haddrill, director-general of the Association of British Insurers (ABI), warned that UK insurers would need to raise more than £50bn ($80.6bn) of extra capital if Ceiops’s suggestions were to be implemented.The trade body described Ceiops’s proposals as “extreme” and said they posed a threat to UK insurers by increasing the capital and reserve requirement to between £30bn and £70bn. “It is hard to see how such a massive recapitalisation could be achieved,” Haddrill said in the letter.Thomas Hess, chief economist for Swiss Re, expressed a similar...


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