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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."

Last updated 01/07/2016