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19 May 2015

Insurance Europe: Response to public consultation on an EU framework for simple transparent and standardised securitisation


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Insurance Europe said it supports the use of good securitisations to help fund the European economy. It also indicated that enhanced standardisation, transparency and quality of securitisations will support insurers' access and interest in this asset class.


Reviving  long-term  financing  remains  one  of  the  most  pressing  policy  issues  in  Europe.  As the largest European institutional investor, holding €8.5tn of assets under management at the end of 2013, insurers are well positioned to support long-term financing to the real economy, as their long-term liabilities enable them to hold long-term assets.

The availability of assets is crucial to the significant investment role that insurers play in the economy. As noted in the paper, high-quality securitisations may be useful to insurers in generating appropriate returns for policyholders and meeting diversification and duration needs.

The consultation raises a number of valuable questions which deserve careful consideration. While noting that an approach to define qualifying securitisation is already part of the Solvency II framework,  the paper also raises  a  question  on  whether  this  approach warrants changes to  better  reflect  the  risk-sensitiveness  of  the framework.

Insurance  Europe largely  supports  the  current  Solvency  II  approach,  but believes  that some eligibility  criteria and  calibration  levels should  be  reviewed  to  appropriately  recognise  the  risk  profile  of securitisations.

In addition, Insurance Europe supports the encouragement of standardisation and transparency in the securitisations market, as a way to help foster the attractiveness of securitisation to private investors.

Insurance Europe believes that this consultation is timely and follow-up policy responses are needed as soon as possible.

Position paper



© InsuranceEurope


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