Yesterday the European Insurance CFO Forum – CFOs at 20 big companies – put out a press release at the kickoff of QIS5 season. See if you can figure out what they are getting at:
FRANKFURT (Dow Jones)–Chief financial officers of 20 major European insurers Monday asked that capital rules under the European Union’s planned Solvency II capital regime for insurers be more balanced.
“A number of outstanding industry concerns remain to be addressed in order to achieve a balance that will result in continued consumer protection, support financial stability and, at the same time, enhance the competitiveness of the European insurance industry,” so that it can offer risk protection to its customers at an appropriate cost, said the European Insurance CFO Forum in a statement Monday.
I’m having some trouble here. Usually, when a group objects to something, it tries to tell you what the objection is. Otherwise, it’s kind of hard to, uh, do something about it.
But the CFO Forum is playing by different rules.
A couple of insurers have their own wish lists, of course. For example, the Dow Jones story I’m citing notes that Munich Re has previously said S-II doesn’t properly credit diversification by line of business. But other comments have been opaque.
- Zurich: Some of the proposals in the impact study that the industry is undergoing “do not reflect these principles and, if implemented as currently proposed, could be damaging to the industry and its customers.”
- Allianz, in February, was “concerned about the proposed capital rules under Solvency II and that the rules should be more balanced,” according to the Dow Jones report.
Here’s the press release. See what you make of it.