Chief executives from a number of leading European insurers that form the Pan-European Insurance Forum (PEIF) published a paper called Insurance View: Regulatory Consequences of Financial Crisis.
The report presents the main key points on the financial turmoil and its regulatory consequences.
"Stakeholders reacting to the financial crisis need to take into account that the business model of the insurance industry differs substantially from that of the other financial services providers," said Henri de Castries, PEIF Chairman. "Insurers do not generate the kind of systemic risk that arises in banking".
PEIF recommends that the new legislation should be targeted, balanced and calibrated according to the expected impact it will have on the economy.
Besides, it should safeguard the level-playing field and further enhance global consistency. PEIF also recommends to enhance the execution of existing regulations.
Members of the PEIF underline the absolute necessity of a swift adoption of Solvency 2. The new European Union (EU) prudential regime, based on fundamentally new risk approach of supervision for cross-border groups, is clearly more adapted to current financial circumstances.
Solvency 2 prudential regime should also rely on a fruitful cooperation among supervisors. The memebers said thet are also highly committed to restoring confidence in the financial sector and to designing a sound and stable financial system. They strongly welcome the ongoing debate to redefine the regulatory and supervisory model of the EU financial sector.
The PEIF consists of Aegon, Allianz, Aviva, Axa, Generali, ING, Mapfre, Munich Re, RSA, Swiss Re, Uniqa and Zurich Financial Services.