Trichet: regulate insurers
JEAN-CLAUDE Trichet, president of the European Central Bank, has thrown his weight behind proposals to tighten the regulation of insurance companies.
Trichet said large insurers should be considered “systemically relevant” because of their size and reach, despite the lack of solvency concerns in the industry.
Calling on authorities to urgently agree a new European supervisory framework, Trichet said: “There is no room for complacency in this environment. Insurers will have to be mindful of having sufficient capital buffers in place.”
His comments follow improved results from insurers over recent months. Speaking at a conference in Frankfurt, Trichet said there were reasons to be cautious about the sustainability of the profits and said the supportive environment for investment income would not continue.