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The stock take showed that in the implementation of the Insurance Directives, some differences between the Member States (MS) exist and a limited degree of convergence between MS can be observed.
The use of hybrid instruments is increasing, although it does not represent a significant portion of regulatory capital in insurance companies, or is not differentiated from subordinated loans in most MS’ legislation. Some differences in their treatment by supervisory authorities in regulatory capital have been noted.
The use of supplementary members’ contributions appears to vary in accordance with the business model of individual mutual companies. Some MS reported that calls are used exclusively, or mainly, as an unbudgeted tool to cover unexpected claims. No noteworthy recovery problems have been reported.
Report
Summary of the industry’s contribution