Aegon: proposed EU Solvency II Directive will strengthen Europe’s insurance industry
July 11, 2007, 2:00 CEST
"Solvency II will strengthen Europe's insurance industry by creating an environment that encourages sound risk management based on economic principles," said Jos Streppel, Chief Financial Officer and member of the Executive Board of Aegon N.V.
Aegon welcomes the publication of the European Commission's proposed new Solvency II framework directive. If adopted, Aegon believes this proposed directive would lead to the creation of one of the most advanced and effective solvency and supervisory systems in the world, strengthening the European insurance industry and enhancing its overall competitiveness.
"Solvency II will strengthen Europe's insurance industry by creating an environment that encourages sound risk management based on economic principles," said Jos Streppel, Chief Financial Officer and member of the Executive Board of Aegon N.V. "Solvency II will bring benefits to all the industry's stakeholders, particularly to its many millions of customers and policyholders. With this new proposed directive, Solvency II will also allow insurance companies to manage their capital more efficiently."
Aegon has long supported the Solvency II process and, in the months to come, will continue that support. Aegon believes Solvency II will ensure not only more effective risk and capital management but also clearer, more harmonized industry regulation and a more level playing field for Europe's insurers.
In particular, Aegon supports the European Commission's four key objectives:
To create a more genuinely integrated EU insurance market;
To enhance the protection of policyholders and beneficiaries;
To improve the international competitiveness of the EU insurance and reinsurance industry;
To promote better and more effective industry regulation.
Aegon believes this new proposed directive marks a further step toward an economic risk based approach to regulation and supervision, similar to the one the Group uses to manage its own businesses.
"A principles-based approach to solvency issues will lead to more efficient capital management and give Aegon credit for its strong risk management," said Tom Grondin, Aegon's Chief Risk Officer. "A system that rewards the management, mitigation and diversification of risks is in line with Aegon's own internal risk management framework."