General Insurance Article - PwC comments on EIOPA Long Term Guarantee details

 Philippe Guijarro, partner, PwC said:

 
 “This assessment is technically complex, resource intensive, and very time pressured. This places a heavy administrative burden on insurers during a period when most in the industry are focused on year end reporting and results, but it is likely to be the last chance for the industry to influence the debate and we therefore strongly encourage companies to participate.

 
 “Although prescriptive in nature, the key challenge for regulators will be to limit the scope of interpretation of any resulting future rules. If the scope is too liberal, this may result in problems when comparing results across the industry.

 
 “The outcome of this assessment is critical to the future of the European insurance industry as it will have a significant impact on the value of insurers’ liabilities, the amount of additional capital they require, their ability to manage risk, and the stability of financial markets in the lead up to the implementation of Solvency II.”