Reducing insurance firms’ investment risks
Draft EU legislation to reduce the riskiness of insurance firms’ investments – and taxpayer exposure to them – will be debated and put to a vote on Tuesday. The rules for insurers will be similar to those already in place for banks, but tailored to their typically longer-term investment profile, so as not to penalise them for taking a long-run view.
The “Solvency II” legislation, thirteen years in the making, would require the EU’s €8 trillion insurance industry, its largest institutional investor, to set aside enough capital to cover investment risks. If approved, it will take effect on 1 January 2016.
Procedure: Co-decision (ordinary legislative procedure), first reading agreement
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