European Commission regulators hope to release a draft of European insurance company solvency standards by July 2007.
Speakers talked about the European solvency project here at the spring meeting of the National Association of Insurance Commissioners, Kansas City, Mo.
NAIC President Alessandro Iuppa, the Maine insurance superintendent, says he wants to make NAIC participation in international insurance regulation efforts one of his priorities during his term in office.
Karel Van Hulle, head of insurance and pensions-financial institutions with the European Commission, said Europeans are trying to reduce excess capital requirements by shifting toward use of modern risk-assessment techniques.
Creating a strong supervisory review process will be a key part of that effort, according to Alberto Corinti, secretary general of the Committee of European Insurance and Occupational Pensions Supervisors, Frankfurt, Germany.
The speakers noted that the European effort to create harmony among European nations is analogous to the U.S. efforts to harmonize state regulations.
The European project also may be of interest to U.S. insurers and regulators because U.S. insurers that do business in the European Union will have to conform to the new solvency standards, Van Hulle said.