Quickly improve framework conditions for securitisations in Europe now
The EU Commission has launched a public consultation on a new securitisation framework. GDV welcomes that the EU wants to improve investment opportunities for this asset class.
Compared to the United States, the securitisation market in Europe has so far played a subordinate role. "It’s good that the EU Commission is now taking up the issue of securitisation and speeding up the development of a common framework", said GDV CEO Jörg Asmussen. "This is an important first step in the realisation of the desired Savings and Investment Union". A revived securitisation market would create additional investment opportunities for financing the transformation.
To date, securitisations account for less than one percent of the capital investments of the insurers operating in Germany. "Insurers would like to invest more in securitisations, but there have been a few hurdles in the way to date", Asmussen said. "We have therefore already developed our own positions, which we will introduce into the debate." These include, above all, lower risk-adequate capital requirements under Solvency II and a reduction in reporting requirements. "I hope the EU Commission will tackle these issues. The securitisations must also be followed by further urgent steps to expand the Savings and Investment Union", Asmussen cautioned.
GDV will participate in the EU Commission's consultation until the end of the consultation period in eight weeks. You can download the position paper with the insurers’ proposals here:
