It is important that the wave of regulatory proposals presented after the financial crisis is correctly handled and does not lead to exaggerated regulation of the insurance industry. This would have negative consequences, not only for insurance companies but also for customers and the economy as a whole. This according to Managing Director of Insurance Sweden, Christina Lindenius.
Managing director Christina Lindenius
What challenges do you see for the insurance industry?
“It is important that the proposed rules presented after the financial crisis are correctly handled and do not lead to exaggerated regulation of the insurance industry. Overregulation would have negative consequences, not only for insurance companies but also for customers and the economy as a whole. Through our work in Sweden and Europe the legislators have gradually become more understanding that capital requirements should be kept at a reasonable level and that the business regulations must be appropriate. But there are still some misguided proposals. The Swedish Insurance Federation and our member companies must, for example, continue to explain why we believe the insurance guarantee schemes are unnecessary and costly. Moreover, we see that Solvency II and the Occupational Pensions Directive will have major significance in the future design of occupational pensions. Managing this change will be a great challenge. Another exciting challenge is the work of highlighting the role of private insurance as a complement to our future social insurance and welfare systems."
What are the important questions for 2011?
“There are more issues that will affect the entire insurance industry. These include regulation of occupational pension products, the Life Insurance Inquiry and also some tax issues, such as the future taxation of endowment insurance. It is quite clear that these issues will be of significance for how the industry develops going forward, even if so far we cannot exactly determine what it will entail overall. Another urgent task is to simplify information about the industry’s products, not least in the life assurance area. The industry is aware of the need for clearer information. Insurance Sweden can continue to play an important role here. Finally, it is also important to monitor the new supervisory structure in the insurance area of the European Union and how it will affect the industry, for example as regards reporting requirements. These issues are high on the Swedish Insurance Federation’s future agenda.”
How does Insurance Sweden work with these issues?
“Insurance Sweden conducts a close and ongoing dialogue with politicians and officials in the Government Offices and the Riksdag on matters that are important for the industry. We also speak regularly to representatives of central agencies in our area, mainly Finansinspektionen (the Swedish Financial Supervisory Authority), the Swedish Pensions Agency and the Swedish Social Insurance Agency. We also have a close dialogue with other industry organisations. In addition we have many international contacts, not least through the European Insurance and Reinsurance Federation, CEA, but also directly with the European institutions, such as the European Commission and the European Parliament. Contacts with our Nordic sister organisations are also important. Our contacts and our dialogue with the rest of the world are a central part of our activities. It is important that we are perceived as a trustworthy discussion partner. This is how we can really benefit our members.”