The EIOPA, an insurance watchdog that is part of the European Union, has issued a warning to the EU governing body regarding the pace at which it is introducing new insurance regulations. The group, which is part of the European System of Financial Supervision, claims that any delays in enacting these regulations could create problems for insurers trying to adapt to the troubling economic times that have come to Europe. Delays could be possible due to the EU legislative process, according to the European Commission, the agency responsible for drafting laws.
The regulations in question are called the Solvency II regime. These regulations would help insurers handle the turbulence of the economy and enable them to continue growing and conducting business in the region. The regulations have been in the works for more than ten years. They were originally scheduled to be enacted at the beginning of this year, but the European Commission pushed the date back several months. This drew the ire of the insurance industry, but the agency has not shown any sign of implementing the regulations sooner.
The EIOPA claims that the regulations are needed in a timely fashion so as to ensure that insurance groups have the ability to remain flexible in the volatile economic climate. Insurers agree, but there is little that can be done to influence the legislative process of the European Union.
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