The compliance burden across the European Union has reached an estimated one trillion euros a year, according to the European Insurance and Reinsurance Federation.
CER acting director general Eric Fischer says the increased compliance costs and bureaucracy – with more than 30 insurance-related legislative, regulatory and supervisory bodies at EU and international level – is putting the brakes on innovation, limiting competition.
Fischer says it is consumers who will end up bearing the costs of overregulation and called for better consultation with the industry and a balance between adequate policyhol-der protection and excessive constraints.
The CER says analysis by the respected independent thinktank the Dutch Bureau for Economic Policy Analysis estimates the costs of EU admin istrative burden at 3.6 per cent of EU GDP, or 340bn euros.
It says research from the Dutch Centre for Insurance Statistics estimates the costs of compliance as three times the level of the admin burden and so the costs of compliance across the EU can be estim- ated as 1,020bn euros.