Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

02 March 2012

Insurance Europe called for parity between IORPs and Solvency II


Default: Change to:


Insurance Europe said it supports a package of measures related to long-term guarantee products that is currently being developed under Solvency II. This package would then allow the Solvency II principles to be applied to IORPs and insurance companies without any significant adverse or unintended consequences.


"The single market is more than just removing obstacles to cross-border business. It is equally about removing any unjustified difference in regulatory regimes", said Michaela Koller, director general of Insurance Europe.

Speaking at an EC public hearing on the review of the EU Institutions for Occupational Retirement Provision Directive, Koller said: "The outcome of the debate on the review of the IORP Directive should be that consumers have a similar level of protection for a similar level of promises, irrespective of whether they are members/beneficiaries of an IORP or of an occupational pension scheme provided by a life insurer.

"Such an achievement would undoubtedly improve consumer confidence at a time when it is crucial to encourage citizens to save more for their old age."

There can be direct competition between IORPs and insurers providing occupational pensions in EU Member States. To achieve fair competition and consistency in prudential regimes, Insurance Europe strongly supports the application of the "same risks, same rules, same capital" principle for all EU financial institutions providing occupation pension products, provided the economically significant characteristics of pension funds are taken into account.

As EU regulation currently stands, when insurers move to the forthcoming sophisticated Solvency II regulatory regime, IORPs will continue to be regulated under the cruder Solvency I system.

Press release



© CEA - Comité Européen des Assurances


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment