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

--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: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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