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Insurers warn on 'undue incentives'

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Jean-Claude Juncker

Jean-Claude Juncker

Jean-Claude Juncker

The European Union's top insurance watchdog has warned against giving insurers strong enticements to invest in particular asset classes, saying this would run counter to prudent supervision.

"We need to emphasise continually that undue incentives to buy any asset class should not be part of a risk-based, prudent regime," Gabriel Bernardino, chairman of the European Insurance and Occupational Pensions Authority (EIOPA), told a financial conference yesterday.

European politicians want insurers to put more of their €8.5trillion in assets under management into investments that will boost the bloc's struggling economy.

To revive growth, European Commission President Jean-Claude Juncker is also preparing a €300bn investment plan aimed at luring private-sector financing.

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