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MNI BRUSSELS WATCH: Denmark Wants More Reg Of EU Insurance Mkt

MNI (London)
--Copenhagen Wants To Protect Consumers Using X-Border Insurance Products 
--Proposal Fits With Recent EIOPA Suggestion On Insurers Resolution Framework 
By Jean Comte
     BRUSSELS (MNI) - The Danish government is looking for stronger consumer
protection on insurance products inside the EU single market, according to a
document obtained by MNI.
     "The current framework governing the EU Single Market for insurance
services presents many advantages but also challenges with regard to safeguards
for consumers," the paper reads.
     It adds: "... a failing insurance undertaking which operates cross-border
can leave a large number of policyholders in another Member State exposed. This
highlights some potential areas subject to improvement in order to uphold a high
level of consumer protection".
     The document suggests three concrete ways of reinforcing the framework: the
creation of an "early warning system" between national authorities; an enhanced
exchange of statistical data and information sharing; and a mandatory
participation in national guarantee schemes.
     The "early warning system" and the information sharing would aim at
facilitating collaboration between the different national supervision authority
(NSAs) if a cross-border insurer failed. It would enhance collaboration and
access to precise data, but would not fundamentally alter the way the framework
functions today.
     The national guarantee would be a more significant step, making
participation in national guarantee schemes mandatory for undertakings operating
in member states where such schemes already exist.
     The document is a first element of debate following a recommendation made
over the summer by the European Insurance and Occupational Pensions Authority
(EIOPA). The Frankfurt-based supervisory body suggested to set up a harmonized
scheme to deal with failing insurers in the EU. That would, according to the
EIOPA, complement the current capital requirements for insurers created by the
Solvency II directive.
     Reactions from other member states could follow in the next few weeks.
--MNI Brussels Bureau; +44 203-865-3851; email:
--MNI London Bureau; tel: +44 203-586-2225; email:
[TOPICS: M$E$$$]
MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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