This article was changed on 1 October
The reduction of the Solvency II capital charges for infrastructure debt and equity is not enough to remove barriers for insurers to invest, trade body Insurance Europe has claimed.
The European Commission on 30 September amended the Solvency II rules to reduce capital charges that apply to investments in high-quality infrastructure under the standard formula.
The industry described the changes as a step in the right direction, but also insufficient.
"The capital charges for both debt and equity infrastructure investments remain significantly in excess of the actual risks that these assets pose to insurers' portfolios," Michaela Koller, director general of Insurance Europe, said.
Koller added that there is little or no recognition of the diversification benefits that infrastructure brings to insurers' portfolios.
