The operators of the French market condemn Solvency II

Similarly to the protestof the British professionals in 2009, the majority of the French insurers and reinsurers have voiced their condemnation of the rules imposed by Solvency II and which will be in force as of 2012. The French professionals blame Solvency II for contributing to short-term risk taking and for penalizing long-term risks. According to the new measures, solvency requirements will be imposed on an annual basis, which will push insurers to increase their shareholders' equity unreasonably. On his part, FFSA's chairman, has denounced the exclusion of pension funds from the scope of the directive, which put French insurers in an uncomfortable position in comparison with their Anglo-Saxon counterparts.