ABI response to EU summit statement on future of European regulation

ABI response to EU summit statement on future of European regulation

ABI response to EU summit statement on future of European regulation

Responding to the EU Summit statement on regulation, Stephen Haddrill, the ABI’s Director General, said:

“We are pleased over the agreement on establishing a European Systemic Risk Council, but are concerned that insurance is under-represented. The insurance industry has a vital role to play in the Council, not least in monitoring and flagging up risks. Insurers also have an interest as failures of risk oversight have a knock-on effect into all parts of the financial sector, for example in the market for bank capital where insurers are major investors. . While insurers are not usually systemic risk in themselves, because of their long-term business models, substantial capital reserves and careful matching of assets to liabilities, they are core players in many financial markets. As such insurance regulators have a key role to play in the Risk Council, and merit much stronger representation. “

“We welcome the greater scope for CEIOPS, the European supervisory body, particularly its mandatory arbitration powers. This is a necessary first step to a supervisor of supervisors, which we have called for to improve cross-border regulation. The UK insurance industry can only benefit, as will European consumers from these changes, through more market access and better competition.”

– ENDS –

Notes for Editors

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2. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

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