The European Commission has published a speech by Charlie McCreevy (European Commissioner for Internal Market) entitled Cross-border insurance groups supervision. In his speech Mr McCreevy sets out the current position of the ongoing negotiations regarding the proposed Solvency II framework Directive, a vote in the European Economic and Monetary Affairs Committee (ECON) is scheduled for early October 2008, with a vote in Plenary scheduled for November 2008.
Mr McCreevy further states that the proposed framework Directive aims to resolve and modernise insurance group supervision. The proposed framework Directive introduces an innovative and ambitious regime which seeks to facilitate capital management by groups, essentially by firstly allowing under certain conditions a parent undertaking to use declarations of group support to meet part of the solvency capital requirement of its subsidiaries and, secondly, introducing limited derogations to some provisions on solo supervision where appropriate. This group support regime will benefit those groups which decide to apply for it and meet all applicable conditions.
Mr McCreevy further states that the European Commission is ready to carry on with constructive discussions in a bid to identify appropriate solutions to ensure that the proposed group supervision system operates and he was adamant that a more integrated supervision of insurance groups will provide clear benefits for both insurance undertakings and supervisors.
View EC speech - Cross-border insurance groups supervision, 11 September 2008