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MUNICH (Reuters)—Munich Reinsurance Co. is confident insurers and regulators can improve new risk-capital rules for the insurance industry in time for the scheduled 2013 start, its finance chief said on Thursday.
The European and German insurance trade bodies have lashed out at the preparations for the so-called Solvency II rules, saying a field test late last year exposed deep flaws in need of immediate correction.
Munich Re Chief Financial Officer Joerg Schneider played down the difficulties in a conference call with journalists on Thursday.
"Solvency II is better than the current supervisory regime, though it will need to be improved," he said.
"I am still confident that that will happen by the time the rules come into force in 2013," he said, adding that transitional arrangements foreseen by the European Commission will help settle the new rules into place.
The reporting requirements now foreseen are too burdensome and particularly smaller insurers with limited risks might have trouble applying the rules as they now stand, Mr. Schneider said.
The rules are designed to better protect consumers by requiring insurers to more closely match the capital they hold with the risks on their books.
Mr. Schneider said Munich Re was very comfortable with its own standing following the field test of the rules, though he declined to give details.
European insurance trade body CEA on Thursday said it was essential that the new rules were workable for all insurers and that is was not too burdensome, complex and expensive to comply with them.
The European Commission last month indicated that it might grant companies up to 10 years to fully apply some aspects of the rules, whose details are being finalized by the European Union's powerful new insurance watchdog, the European Insurance and Occupational Pensions Authority, or EIOPA.
EIOPA is expected to publish the results of its Quantitative Impact Study (QIS) in March.