Brussels, 29/06/2005 (Agence Europe) - At a meeting with Charlie McCreevy, European Commissioner in charge of the Internal Market, the European mutual insurance companies (ACME and AISAM) have called for the "Solvability II" system to take account of the specific nature of their activities. In a press release, they call for a "quantitative impact study and experimentation to be carried out within companies". The future legislative package "Solvability II", which is still in its preparatory stages, aims to give the insurance sector a prudential framework to stress risk management. It takes its inspiration from the project "Bale II" for the banking industry, and is based on three pillars: capital requirements, control framework and market discipline.
The European mutual insurance companies also launched an appeal to the Commission in favour of resuming the debate on the status of European mutual insurers. Increasing requirements for solvability, corporate governance and international accounting standards "are likely to lead to national and international consolidation" which will call for the adoption of a European status for European mutual insurers, they feel. Discussions on this status have been asked deadlock for over 10 years, as the Council failed to adopt a common position on the proposed regulation.