Regulations Cost European Insurers Nine Billion Euros
Way to stay competitive
Europe's insurers spent up to 9 billion euros ($11.9 billion) between 2010 and 2012 as they struggled to meet standards set in a barrage of regulation introduced since the financial crisis, a report published on Thursday said.
Following the 2008-2009 crisis, regulators around the world rushed to compile rules to head off future upsets, aiming some at the insurance sector where industry leaders such as Allianz SE and Axa SA were deemed of systemic importance.
Underscoring the impact of the clampdown, the report compiled by consultancy Deloitte said the largest insurance companies had each spent more than 200 million euros to meet the new rules, pushing the bill for the top 40 European insurers to nearly 5 billion euros.