EC EVP calls for every EU country to have insurance guarantee schemes under SII

Written by Adam Cadle

29/01/2020

European Commission executive vice president Valdis Dombrovskis has called for every EU country to have insurance guarantee schemes to plug a gap in EU insurance law.

In a speech in Brussels today, Dombrovskis said: “There is no EU-wide resolution regime for the insurance sector in the event of distress, and no minimum EU rules on insurance guarantee schemes."

He argued that insurance guarantee schemes “would benefit policyholders, taxpayers and the insurance sector as a whole” and said this should be an addition to Solvency II.

“We are already testing the water with a proposal for dealing with insolvency in the motor insurance sector. EU institutions are now discussing this at the trilogue state. The Commission has also requested EIOPA’s advice on insurance recovery and resolution.”

Dombrovskis stated that that Solvency II review will not be just a technocratic exercise. “Europe’s insurance sector is too important for that – for our economy and society. Protecting policyholders remains vitally important.”

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