Otto Thoresen, Director General of the Association of British Insurers, has called for European Union policy makers to ensure that draft EU Solvency II rules do not prohibit insurers from driving growth in the UK and making long term investments which generate growth in the economy.
In a speech presented at the Economist Insurance Summit on Friday, Thoresen stated: “The draft rules pose a challenge to the UK pension annuity market and to insurers’ ability to make long term investments and generate growth in the economy.
“There is still an urgent need to clarify and expand the wording on the Matching Premium. Achieving this would enable insurers to play a major role in infrastructure investing as outlined in the Chancellor’s autumn statement last year.”
He also noted that the insurance industry was an important contributor to the UK economy with a key part to play in a return to growth, and that it was therefore vital that insurers, whether from the UK or other European countries, were able to do business across the globe on a broadly level playing field.
Thoresen explained that, “if the EU insurance sector were to remain a global market leader, third country equivalence would need to be higher up the political agenda, and it would be imperative that EU companies were not placed at a competitive disadvantage against local players in international markets.”
Source: Association of British Insurers
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