In an open letter to European Commissioner Michel Barnier dated 29 March 2011, leading organisations within the European insurance and reinsurance industry have expressed concern with the development of the Solvency II process.

The letter, signed by representatives of the Pan European Insurance Forum, the CEA (European insurance and reinsurance federation), the CFO Forum and the CRO Forum, stated that implementing the Level 2 measures proposed risked “driving insurers out of their long term business”. The letter suggested that this would have with negative consequences on the availability and affordability of insurance products.

The letter called upon the various working groups established by the Commission to alter the prescriptive and conservative approach which had been adopted in several aspects of the Level 2 text and to return to the underlying principles of the Level 1 Directive.

To view the letter, please click here.

For further background on the Solvency II process, please see our dedicated Solvency II blog page here.