Solvency II proposals have power to affect global change, CEA

Insurers welcome risk-based proposals • Bancassurance grows in popularity • Munich Re issues Tokyo earthquake bond

The risk-based economic approach of the European Commission’s Solvency II proposals will enable insurers to allocate capital where the risks really are, commented the European insurers’ federation Comite Europeen des Assurances (CEA). It will encourage better risk management practices and improve policyholder protection through the use of internal monitoring of financial and operational processes, the recognition of alternative risk mitigation techniques such as securitisation and other risk diversification measures.