However, unnecessarily high capital charges continue to threaten insurers’ ability to make these important investments
In 2014 Europe’s insurers had 9 900bn euro of assets under management, according to figures published by Insurance Europe, the European insurance and reinsurance federation.
Concerns remain, however, that Solvency II will exaggerate the risk that insurers’ long-term investments present. This will make it unnecessarily expensive for insurers to continue making these investments, limiting their ability to continue delivering such a significant contribution to society.
Michaela Koller, director general of Insurance Europe, commented: “While it is encouraging that these investments have continued to grow, policymakers need to ensure that regulatory capital charges are commensurate with the actual risk that these investments pose. We hope that this issue will be addressed as part of the EU Investment Plan to enable our industry to continue playing an increasingly important role in underpinning growth in Europe.”