Enhancing EU Competitiveness: The Role of Insurance and Financial Integration

Improving Europe’s Insurance Market and Competitiveness

Key Thoughts on European Competitiveness

Sesana highlights the need for a more integrated insurance market in Europe. He believes that a larger, more liquid capital market could enhance the region’s competitiveness, addressing gaps identified in reports by Draghi and Letta. Europe is currently falling behind the US and China regarding productivity and market innovations, including IPOs and unicorn companies.

Solvency II’s Role

Solvency II is a significant regulation for the insurance sector. It has raised awareness among industry players about their roles. Ending the Solvency II legislative process offers opportunities to free up capital for real economy investments, boosting the private sector. Insurers could act as long-term investors, unlike banks that often prioritize short-term gains.

Generali‘s Investments

Generali emphasizes long-term investments to support a competitive Europe. The company has invested over €20 billion in infrastructure projects and direct business financing. This includes funding for green initiatives like solar and wind energy projects. Generali’s Fenice 190 fund specifically aims to support SMEs in various European countries.

Addressing Climate Change

The insurance sector faces a large protection gap, especially related to climate risks, estimated at USD 2 trillion globally. Generali believes that insurers have a pivotal role in helping society understand and mitigate risks related to climate change. The aim is to shift from mitigation to adaptation while promoting prevention through infrastructure development.

Supporting the Green and Digital Transition

The insurance industry is well-positioned to support Europe’s green and digital transitions. Generali calls for unlocking the sector’s significant assets, which amount to around €10 trillion, for these necessary investments. By focusing on innovation and digital advancements, the insurance sector can drive meaningful changes in Europe.

In summary, enhancing the European insurance market and aligning it with long-term goals could significantly boost the region’s competitiveness and ability to tackle pressing challenges, including climate change.