Statement by Nikolaus von Bomhard, Chairman of the Board of Management of Munich Re

The financial crisis has shown that the supervision of insurance undertakings by the German Federal Financial Supervisory Authority (BaFin) has contributed to effective consumer protection and stability in the insurance sector. This model of success should be retained. We are therefore of the opinion that integrating the supervision of insurance undertakings in the German Bundesbank would be a step in the wrong direction. Insurers have a fundamentally different business model from that of banks. Insurance supervision cannot function according to the rules governing the supervisions of banks. This is also why separate supervisory authorities are being established at European level for banks and insurance companies.

Besides, a major restructuring of insurance supervision would lead to considerable efficiency losses, which is not justifiable in the light of the current economic challenges and the ongoing implementation of Solvency II.