PARIS: The insurance industry needs stability over the next couple of years to adapt to the sophisticated risk capital rules known as Solvency II that will finally come into force on Jan. 1, according to German financial watchdog Bafin.
"We don't need Solvency IV or Solvency III," Frank Grund, Bafin chief executive director of insurance and pension funds supervision, said on Friday.
Speaking at a Paris conference, Grund added that insurers needed two to three years to work on their new internal models.
Insurers have already begun to publish Solvency II ratios, which compare their capital on hand with the amount of buffer the rules say they should hold for the risks on their books, as a headline figure to demonstrate their capital strength.
Reinsurer Scor CEO Denis Kessler told the conference that any further moves to strengthen regulation could hit economic growth. "We are here to say that we are on an optimal level, please don't go forward, otherwise it would be detrimental for growth," Kessler said.
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