While Insurance Europe supports an effective macroprudential framework that mitigates potential systemic risk in the financial system - the limited level of systemic risk originating from the insurance industry means additional macroprudential measures are not needed.
This is because a comprehensive macroprudential monitoring framework is already in place, which includes many instruments with a macroprudential impact. In particular, the recently-implemented Solvency II framework represents a regime change in insurance supervision that also includes many new macroprudential elements, the impact of which will only become apparent over time.
In its response to the European Systemic Risk Board’s report on macroprudential provisions, measures and instruments for insurance, Insurance Europe said that any approach taken for the regulation of macroprudential risk in insurance should take full account of developments at international level and be globally-consistent.
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