BRUSSELS (Thomson Financial) - The European Commission will unveil a reform package for the insurance industry known as Solvency II next week which changes the way companies are regulated and makes firms more competitive internationally, said the Financial Times.
The reforms will place insurance groups under a single "group supervisor" and companies with low or moderate risk may be able to reduce the capital they are required to hold, said the paper, citing a draft of the proposal.
The industry sees compliance costs of 2-3 bln eur but has backed the reforms because they should introduce greater flexibility.
In addition, companies with cross-border business would only have to comply with full regulatory requirements in their home country, with other countries where they are acting as "host" regulators.
frances.robinson@thomson.com
fr/ejb
