CEA calls for constructive discussions on Solvency II

The European insurance and reinsurance federation (CEA) has called for constructive discussions to break the deadlock on Solvency II now that the EU Council agreed on a text that excludes group supervision.

In a statement the CEA said it hopes discussions will lead to a compromise on group support to preserve the ‘integrity of the economic risk-based principles that are the raison d’être for Solvency II’.

The CEA added that it was disappointed that the text presented to the Council had removed all mention of the group support regime, which allows for the supervision of insurance groups.

Michaela Koller, director general of the CEA, said: ‘Given the different views in Council and in Parliament, it is important that the discussions on the open issues continue and that they are clearly focused on reaching a consensus that reflects the ultimate goals of the proposed regulatory regime and remains broadly in line with the original Commission proposals.’

The CEA believes that the group support regime is fundamental to Solvency II since it allows for the economic assessment of a group’s risk and capital as well as the coordination of regulators involved in oversight.

The European Parliament is due to vote early next year on its draft report that supports group supervision.