NAIC leaders “expressed serious reservations and concerns” about the directive

In a letter sent to Christine Lagarde, the French minister for Economic Affairs, Finance and Employment who presides over the Council of the European Union’s Economic and Financial Affairs Council, The National Association of Insurance Commissioners (NAIC), a US based association, expressed serious reservations and concerns about several key aspects of the proposed “Solvency II” Framework Directive.

The NAIC wrote:”Although many essential components of Solvency II remain undefined, we question several features of the existing proposal, including the unbalanced focus on capital requirements and management’s ability to assess and quantify risks using internal models. And, while we understand the EU struggle to design an effective approach to group supervision, recent events further emphasize that any approach must ensure that all entities within a financial holding company – and their policyholders or depositors – are treated fairly and their benefits and rights fully protected.” Click here to read this letter