Threats to solvency are no longer a major concern, although life insurers are facing rising interest rates, concluded Better Finance, the European Federation of Investors and Financial Services Users, on Tuesday 20 September, on the occasion of the publication of their 2021 Solvency Report.
Better Finance analyses the Solvency Directive every year from the point of view of both insurers and policyholders. Its study covered the 10 largest life insurance companies in France, Spain, Italy, Germany and the Netherlands.
“European markets are still very fragmented. Even companies of the same group pursue very different strategies depending on the national market“, explained Axel Kleinlein, actuary for the European Insurance Association, at the press conference presenting the study.
The authors deplore the misuse of policyholders’ money as a substitute for equity reserves in Germany and France.
They also note a lack of transparency in credit reporting. Although there is a legal obligation to publish these reports, they are difficult to find or require an explicit request to companies. “We have informed the European Insurance and Occupational Pensions Authority (EIOPA) and asked them to put an end to this arbitrary handling of publication obligation - for the benefit of all policyholders and consumers”, emphasised Carsten Zielke, one of the authors.
The authors also regret that the accessibility of credit reports, in terms of language and presentation, is limited for the general public. They highlight the clear need for an executive summary in the solvency reports, written in plain language and using standardised templates for key indicators.
To consult the report: https://aeur.eu/f/36n (Original version in French by Anne Damiani)