FRANKFURT (Reuters) – Insurers that venture into bank-like business activities in search of higher returns must realize they will be regulated like banks, the head of the European Union's insurance watchdog said on Wednesday.
Faced with low yields on huge investments in government bonds, insurers around Europeare moving into financing business traditionally dominated by banks, such as real estate.
“If insurance groups heavily develop their business into non-traditional or non-insurance activities then they should expect to be treated in relation to those businesses as if they were banks,” Gabriel Bernardino, chairman of the European Insurance and Occupational Pensions Authority (EIOPA), said in a speech.
Europe's biggest insurer, Allianz, and other big players like Munich Re have been ramping up their presence in commercial real estate financing.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
