EU Plans to Water Down Solvency II Insurance Rules, FTD Says

The European Union intends to alter the planned new capital rules for European insurers following criticism from the industry and national regulators, Financial Times Deutschland reported in a preview of a story to be published in tomorrow’s edition, without saying where it got the information.

The EU may decide to exempt for seven years all existing insurance contracts from the new Solvency II rules, which will come into force in 2014, the newspaper said. About 40 percent of German life insurers would have problems complying with the new rules, FTD reported.

To contact the reporter on this story: Niklas Magnusson in Hamburg at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net

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