New EU rules for insurance adopted: Experts praise reform as an opportunity for the financial market

New EU rules for insurance adopted: Experts praise reform as an opportunity for the financial market

According to a report from www.faz.net, the revised EU rules for insurance have practically been decided. The reform aims to relax capital requirements, differentiate between small and large insurance companies and favor providers that invest in “green” assets.

The impact of this reform on the market could be significant. Relaxing capital requirements will free up large amounts of previously tied up capital. This could lead to increased financing of productive investments, which would ultimately benefit consumers.

Furthermore, insurers that invest in “green” investments are privileged, which supports the promotion of sustainable investments. This could lead to a shift towards sustainable investing in the industry.

In terms of the consumer, the impact could be in the form of longer-term and more attractive equity investments. Strengthening the competitiveness of European insurance companies would also benefit consumers by benefiting from a sound financial position of companies.

The reform also means greater consideration of interest rate risk, which could help mitigate the impact of negative interest rates in the future.

Overall, the reform is aimed at making the insurance industry more resilient and improving the protection of insured parties, which could be a positive development for the market, consumers and the industry as a whole.

As an economist, I believe that this reform will strengthen the insurance industry in Europe and ensure a more sustainable and resilient future landscape.