Italian petrochemical case clarifies polluters’ responsibility as EC mandatory insurance system unlikely for now.
A new Geneva Association report has added further evidence to support calls for the differential treatment between insurers and banks. Garry Booth reports.
[LONDON]—Pressure is fast building on the European Commission from insurance company and buyer representative groups to water down the advice given to it on Solvency II or risk forcing the industry to carry more risk than it wants or needs as the European economy tentatively creeps out of recession.
The European Commission has adopted a new Block Exemption Regulation (BER) for the insurance industry that comes into force on April 1 and only includes two of the previous four categories that were exempted from normal European competition rules.
Swiss insurance buyers agree with colleagues around Europe that pricing conditions for their core lines will remain stable for the foreseeable future as competition between insurers remains at a high level.
Pressure on the architects of Solvency II, Europe’s planned new capital adequacy regime for the insurance sector, to relax recently toughened proposals was ramped up last week as a number of leading industry bodies called for a radical rethink.
Insurance buyers should not fear an E.U.–wide mandatory financial guarantee scheme for Environmental Liability Directive (ELD) coverage that could, in fact, increase the number of carriers in the market and lower pricing for these new liabilities, an environmental expert at insurance company ACE told Commercial Risk Europe.
A European Commission report on the efficiency of the Environmental Liability Directives (ELD) is due next month and could recommend the adoption of an E.U. wide mandatory financial security scheme. But, insurers and operators alike have urged the commission to refrain from making this move.
No insurers and reinsurers pose a systemic risk to the wider financial market based on criteria used by the Financial Stability Board (FSB), according to the Switzerland based insurance group the Geneva Association.
The Environmental Liability Directive (ELD) finally reached implementation in all 27 E.U. member states at the end of 2009, two years after its deadline, and questions have swiftly emerged about the preparedness of industry and the insurance market for this complex new regime.