CEA says Solvency II costs “manageable”

The costs of implementing Solvency II could soar if the economic approach currently proposed for the project was replaced with a more conservative approach during the political negotiation process, according to the results of an impact analysis by the Comité Européen des Assurances (CEA).The CEA said insurers’ administrative costs would be “manageable” if an economic approach is adopted and indeed would be lowered on account of the work already carried out by many firms to improve risk management systems.