Insurance Europe

Europe's insurance industry welcomes Mario Draghi's report published today, backing the need to prioritise EU competitiveness. The industry supports the report's call to increase the flow of investments and savings across the EU, ensure Europe’s ambitious decarbonisation plans are part of a larger coherent plan, and reduce regulatory burden.

Insurance Europe welcomes the recognition in the former Italian prime minister's report that Europe needs a, 'massive and unprecedented investment from a historical perspective' of around an additional €750-800bn a year. The insurance industry stresses it can further contribute given its role as a major long-term institutional investor: European insurers have close to €9.5tn invested in the economy and 69% of their investments in equity, corporate and sovereign bonds are within the EU.

Michaela Koller, director general of Insurance Europe, commented, 'The Draghi report is right to say the EU must place competitiveness at the heart of its priorities for the coming years. If Europe is not to lag behind on the global stage and deliver for all Europeans, it needs to unlock further private investment to drive forward innovation, sustainability and digitalisation. It needs to rethink how the EU sets rules so regulations support, not hold back, the insurance industry's ability to provide protection, create jobs, support innovation and invest in the economy. The report offers the right ambition, but we need a clearer plan of actions which will allow our sector to play its full role''.

Reiterating several of its recommendations recently adopted in its Insurance Matters manifesto, Insurance Europe calls on the EU to:

1. Increase private investment into the EU's economy:

• Make it easier for consumers to invest in insurance and pension products
• Address excessive capital requirements which currently act as a barrier
  
• Increase insurers’ access to assets such as venture capital, infrastructure, SME equity and debt
  
• Promote financial and insurance education and nudging mechanisms

2. Take a new approach to EU regulation that facilitates, instead of stifles, innovation, global competitiveness and digitalisation, which includes:

• Delivering on the EU's commitment to reduce reporting burden by 25%.
• Changing the approach to EU regulation by developing and enforcing clear principles to ensure new regulation is limited to what is truly necessary and is as effective and efficient as possible.

Insurance Europe will continue to examine and assess the proposals included in this extensive report.