EU Plans ‘Counter-Cyclical Premium’ for Insurers, FTD Reports

Oct. 10 (Bloomberg) -- The European Commission is planning a so-called counter-cyclical premium for insurers, Financial Times Deutschland reported, without saying where it obtained the information.

The premium would reduce the need for loss provisions amid a decline in value of sovereign bonds, the newspaper said. The clause would also water down the rules of Solvency II, the proposed risk-based regulation for insurers in Europe, according to the report.

To contact the reporter on this story: Christian Vits in Frankfurt at cvits@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net