Luxembourg, 03/06/2008 (Agence Europe) - On Tuesday 3 June 2008, EU finance ministers took note of a progress report on work on the draft Solvability II Directive that introduces new EU solvability and supervision rules for European insurance and re-insurance companies. Despite progress this year on the less controversial aspects, differences remain over key points of the legislation, like supervision of insurance companies. Andrej Bajuk, Slovenia's finance minister, said he was certain that the lie of the land favoured agreement being struck. At the meeting of the finance ministers, the Slovenian Presidency of the EU reportedly expressed doubts, however, about the likelihood of the legislative process being completed in 2008.
Member states recognise that the supervisor of the member state where an insurance company is established should coordinate the cross-birder supervision of the company's business by the colleges of regulators that will be set up but countries in central and Eastern Europe like Slovakia, Slovenia, the Czech Republic and Romania, in whose territory no European insurance companies are based, fear that their national supervisor would lose powers within the new colleges. They also express doubts over consumer protection issues. EU Internal Market Commissioner Charlie McCreevy said that some member states opposed the draft directive but work would continue. He said it did not make sense to want to have an integrated European market without taking the necessary steps to evolve the surveillance structures. On the cross-border supervision of insurance companies, the exact powers of the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) have yet to be determined. CEIOPS might act as a mediator in the event of disagreement over the lead supervisor and it could ensure that all the colleges acted in an identical manner. (M.B.)