The European insurance and reinsurance federation (the CEA), a representative body of national insurance associations in Europe, has published a paper warning against what it perceives to be the "overly prudent or excessive capital requirements" contained in the Solvency II advice papers submitted by the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) to the European Commission.

The CEA are concerned that excessive capital requirements would have worrying consequences for policyholders, the overall economy as well as insurers and would have widespread detrimental effects.

The CEA want the suggested capital requirements to be carefully assessed in the final stages of the Solvency II calibration (in particular ahead of QIS5) to ensure that they are not overly prudent and damaging to both the industry and policyholders.

For further information: Why excessive capital requirements harm consumers, insurers and the economy