It’s a valid question as various governments seek to “unlock” pension contributions and savings capital for pet projects such as Net Zero, societal engineering, food chain transition, land acquisitions, carbon capture etc. Some of these projects may well be profitable long term, others less so, but the issues of regulatory oversight, agreed aims and statements of risk should all be front and centre so that savers can make their own judgment.
Here’s the word;
Insurance Europe supports the European Commission ambitions – published recently – to create a Savings & Investment Union (SIU), which is a crucial step towards building a more globally competitive Europe.
The insurance industry already contributes to achieving the SIU objectives by:
- Providing protection to EU citizens and businesses
- Offering products that boost retail participation in capital markets and help tackle demographic challenges
- Investing long-term in the economy, with close to €9.5 trillion invested
Increasing retail savings through insurance products and the right regulatory conditions will help insurers further contribute to the SIU.To achieve this the industry proposes:
1/ Boost retail savings and investmentMake it easier for consumers to invest in savings/pension products
- Improve financial education to increase the recognition of the need for savings/ insurance
2/ Increase insurers’ ability to invest in line with SIU objectives
- Improve prudential and accounting rules
- Facilitate greater cross-border investment
- Increase insurers’ access to infrastructure, SME equity, SME debt, and venture capital
3/ Ensure a competitive, growth-friendly regulatory environmentTake a new approach to regulation that enables insurers to invest and innovate.
The SIU offers new momentum for Europe, but it should be carefully designed to support growth and competitiveness. Insurance Europe will continue to contribute to the discussions so that the SIU delivers for people.
Read our full recommendations here:https://lnkd.in/eNDVmQSb
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