2009-07-01

By Editor, CIR

The new head of Europe's risk management associations body says he plans to step up its lobbying of Brussels on the Solvency II regime.

Peter Den Dekker, incoming president of the Federation of European Risk Management Associations (FERMA) and corporate insurance risk manager of Dutch firm Stork NV, stated that he will make it a priority to ensure that both the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the European Commission are fully aware of insurance buyers' concerns over the Solvency II capital adequacy regulations.

At a recent conference on the future of risk regulation, representatives of the two main German insurance buyer associations suggested that European insurance buyers have concerns about the impact of Solvency II on captives and on the availability and cost of insurance coverage.

"There is an increased workload that needs to be done to meet the regulation, and it does not bring a lot of added value," said Peter Klatt, a board member of European Captive Insurance & Reinsurance Owners' Association. "It risks making captives quite unattractive."

FERMA broadly supports Solvency II as giving added security for corporate insurance buyers in the European Union, but has expressed worries over the impact on pricing and capacity, particularly for long-tail liability and catastrophe risks. It has also warned against the new regime giving a competitive advantage to large, multiline insurers at the expense of smaller companies.

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