UIA Insurance News

Solvency II implemented for European insurers

The European Parliament has ratified the new Solvency II scheme which aims to improve monitoring and reduce risk for insurance firms across the continent.

Under the new initiative, insurers and reinsurers will be asked to outline all risks they face and to take steps to monitor and manage these risks both more effectively and in a more transparent manner.

In addition, a new group supervisor role is to be set up for all businesses.

Internal market and services commissioner Charlie McCreevy noted: "We need regulation that requires companies to properly manage their risks, that increases transparency and that ensures that supervisory authorities cooperate and coordinate their activities more effectively."

According to figures compiled by the Association of British Insurers, the number of fraudulent insurance claims in the UK increased by 17 per cent during 2008.

The organisation noted that the majority of the 107,000 illegal claims came as part of individuals exaggerated or making up false home insurance losses.

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