MEP dubs reinsurance report ‘a good deal’

By Aoife White

Date: 04/05/05

The author of a European Parliament report on reinsurance said critics should back off. "This is a good deal," said British Socialist MEP Peter Skinner.

Attempts to drag out the process to a second reading were "a disgrace", he said, referring to criticisms from French centre-right MEP Jean-Paul Gauzès.

Skinner said that his "very hard-fought-for compromise" would allow European reinsurance rules to enter into effect across the EU in January 2009.

The Parliament and Council of Ministers had worked closely on the draft rules to create a single European reinsurance market, he said, adding that his report had won the backing of 99% of the insurance industry.

The report was originally scheduled for a Parliamentary vote on 10 May but it has been shifted to the 25 May plenary session.

The delay allows the Parliament's economic and monetary affairs committee to discuss last-minute amendments to the report put forward by Gauzès (EPP-ED). The French MEP voted against the report but is not suggesting major changes.

The European insurance lobby, the Comité Européen des Assurances (CEA), said it was concerned about some points in Gauze's opinion. Overall, the CEA declared itself "very happy" with the Skinner report.

Skinner has called for an end to national restrictions on collateral requirements, which would allow European reinsurers to compete for new business, underwriting firms in the world's largest economy, the US.

Currently reinsurers in Germany, France and Portugal have to provide letters of credit to advance funds before they underwrite business. Insurance firms claim this requirement distorts competition as it forces them to tie up capital in those three countries.

Charlie McCreevy, the commissioner with responsibility for financial services, has promised to talk to the US authorities about ending collateral requirements for European reinsurers who take on US clients.

Anticipation of a vote in the European Parliament on the proposed Directive on reinsurance. The vote on the report by UK Socialist MEP Peter Skinner (Committee on Economic and Monetary Affairs) was delayed to the plenary session on 25 May 2005 to discuss last-minute amendments. The proposed legislation would amend Council Directives 73/239/EEC, 92/49/EEC and Directives 98/78/EC and 2002/83/EC.