Restrictive regulations have long been blamed for holding back Europe’s market for bundling mortgages, car loans, credit card debt and other types of borrowing into financial products. (Credit: noah9000/Adobe Stock)
(Bloomberg) — The European Commission is considering reducing the capital that insurers must hold against investments in asset-backed securities, part of a broader effort to revive a €1.2 trillion ($1.4 trillion) market that can finance areas like housing, energy and defense.
The reduction would be as much as 40% in some cases, according to a document being discussed with a panel of experts, with the size of the cut depending on the credit rating and whether the transaction complies with a framework for securitizations.
Recommended For You
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:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 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.
