after the crisis: changes in regulation in europe... - the most important trends and influences upon...
TRANSCRIPT
![Page 1: After the crisis: Changes in Regulation in Europe... - the most important trends and influences upon the insurance market Michaela Koller, director general,](https://reader036.vdocuments.mx/reader036/viewer/2022083007/56649ddf5503460f94ad95f6/html5/thumbnails/1.jpg)
After the crisis: Changes in Regulation in Europe...
- the most important trends and influences upon the insurance market
Michaela Koller, director general, CEA
Budapest, 05 October 2010
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Key developments post-crisis
International convergence: new emphasis
Stability: new core focus
Systemic relevance Supervisory architectureTax/levies/funds
Prudential requirements: increasing
Conduct of Business Rules / Consumer Protection: increasing
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A global post-crisis agenda
Globally shared policy objectives
Global financial stabilityStrengthened supervisory and regulatory regimes Industry contribution to crisis prevention ./. Taxpayer
Key outcomes determined at G20 level
Stronger role of international for a such as
Financial Stability BoardJoint Forum:
Basel Committee, International Association of Insurance SupervisorsIOSCO
IMF3
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EU supervisory architecture
New European supervisory authorities
European Systemic Risk Board - macro-level supervisionWill identify risks to financial stability Will issue warnings and recommendations
European Supervisory Authorities – micro-level supervisionBinding powersCan take decisions on companies in certain circumstancesWill draft (binding) technical standardsWill assess systemic importanceWill develop criteria to establish a stress testing regime
TimelineNew architecture in place in 2011
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Financial sector contribution to the crisis
Fast-moving target: at all levels G20 – EU - national debates
G20 to decide at next summit in November
IMF recommends options that would include the insurance industry
Financial stability contributionFinancial activities tax
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Financial sector contribution to the crisis
EU CouncilPolitical push towards a financial sector tax / levies
European Commission parallel initiatives
Crisis management regime, including resolution funds Discussions focused on banks – but to be extended to insurers
Bank leviesTransaction tax – “innovative financing”
European Parliament Recurrent requests to EC and Council to move forward on a broad basis
EU: no agreement on “stability fund” or a central IGS in the context of the new supervisory architecture
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Solvency II – increased capital requirements?!?
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Solvency II Directive agreed
Appropriate answer to the crisis for the insurance sector
Implementing measures under development
Concerns over Ceiops adviceNeed for data – QIS 5 instrumental
QIS 5 exercise
EC corrected Ceiops original advice to some extentFurther correction requiredCall for high participationTiming
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Increased consumer protection
Distribution and selling practices
Packaged Retail investment productsInsurance Mediation Directive
Insurance Guarantee Schemes
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