European Commission urged to include insurance in financial reforms
A member of the EC Competition Directorate has urged the European Commission to ensure that a consistent review is given to the financial sector by rolling out insurance into broader cross-border banking and financial services regulation reforms.
Commission project leader Eithne McCarthy stated at a private insurers meeting in London that the Commission is still contemplating the appropriate response to the present market crisis.
McCarthy added that it was unclear whether the insurance sector’s current “block exemption” from competition law will last beyond 2010 (when it is due to lapse), and that the insurance sector has not made a compelling argument for its retention.
William Sturge, partner of LG (the law firm which hosted the gathering), has described the approach as clearly inconsistent as information sharing regarding risk could be reduced in the insurance sector whilst politicians are urging for more information sharing in the banking sector.
Sturge went on to say that the insurance sector must make the case for its exemption, adding that were it to lapse, then higher premiums would be the likely effect for policyholders.
Category: Insurance News
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