Insurance regulators from Europe are not solved on the life insurance products which offer long term guarantees even after recent proposals on the product's supervision.
The proposals, which mirror the drive to lift the banking sector's capital quotients, are doing little to sway insurers and regulators. Many oppose the product's regulation because of incorrect assumptions that insurers are always affected by temporary market volatility.
Individuals from the legal sector noted that the proposals released on Friday by the European Insurance and Occupational Pensions Authority (EIOPA) would aid in acquiring deals on risk-capital rules for the insurance sector.
The EIOPA is considered as the Euro zone's insurance watchdog.
Insurance Europe, an EU trade body, pointed that the report is "disappointing," saying that the EIOPA's plans does not take the insurance business' long-term nature into consideration.
"The measures proposed would not work as intended," stated Insurance Europe.
Top insurers from the region such as Allianz, Generali, and AXA are said to be ready for Solvency II's risk management requirements, which many consider to be "sophisticated".
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