CFO Jörg Schneider said the new rules planned will be a huge step forward for insurers

Munich Re said it supports the directive proposal for Solvency II adopted yesterday.

In a statement the firm said: “Solvency II is the major EU initiative to fundamentally restructure national supervisory systems for insurance, gearing them more closely to strictly economic, risk-based criteria.”

CFO Jörg Schneider commented: "The new rules planned will be a huge step forward for insurers. The proposal released yesterday is an important milestone."

He added: "It is impressive how quickly the European Commission, with the help of the European insurance supervisors in CEIOPS, has been able to come up with a proposal of this quality."

According to Schneider, the final directive ought to take greater account of the balancing effects of different types of risk and to structure group supervision even more effectively.

"But we are confident of being able to highlight the opportunities for improvement in a dialogue with the political bodies concerned. It is now important for the directive proposal's good economic principles to be consistently implemented in the further course of the European and national legislative processes."

Schneider added: "We hope that the ambitious timetable can be kept to and that the directive will be adopted by the beginning of 2009. That will benefit European policyholders and insurance companies alike, and stabilise the European financial markets."