MEP’s report backs overhaul of European insurance regulation
Solvency II, the planned overhaul of European insurance regulation, won key backing as it worked its way through the European legislative system yesterday.
Peter Skinner, the MEP supervising the legislation’s progress through the European Parliament, issued a report backing the idea of a group supervisor for each company, which would be based in the company’s home state and set capital requirements across the whole of the group. The group supervisor would work with local regulators in European states where the group has subsidiaries.
This is the latest step towards the implementation of the system, which would bring the supervision of insurers’ financial strength across European states into line. The concept of group supervisors is popular with insurers, and the report yesterday won praise from the ABI.