In the context of the fundamental changes that have taken place in the investment environment for insurers in Europe, two senior executives from the insurance and pension unit in the European Commission discussed with Intelligent Insurer how they see the evolving role of insurers.
Low interest rates in many parts of the EU during the past five years have forced insurers to drastically rethink their investment strategies. Some have explored new investment opportunities and new techniques for investing. These decisions have been made, however, against the backdrop of the impending Solvency II directive, which will force insurers carefully to plan such future investment strategies.
Klaus Wiedner, the head of unit insurance and pensions at the European Commission (EC), agrees that especially where insurers have contracts with high commitments, they need to look for better returns. Increasingly, some have entered into riskier investments for higher returns, he notes.
Klaus Wiedner, European Commission, Solvency II, Andreas Viljoen, Regulations, Europe