Insurers have called on global authorities to revamp capital and accounting rules to encourage investment in public works such as power grids and roads, joining banks in warning about post-crisis rules crimping funding for infrastructure.
European and Japanese insurance associations urged standard-setters to reconsider the impact on project finance, in comment letters to authorities tallying the impact of regulatory measures since the financial crisis last decade. In another of the responses published this month, Swiss Re called for standardizing transparency rules to attract investors.
Joining with banks, insurers are challenging the Financial Stability Board’s findings that capital standards and other post-crisis rules have not hurt the supply of funding for infrastructure. The asset class typically refers to networks for energy, transport, communication and civil services — the building blocks of economic development.
The insurance representatives told the FSB they can put more money than banks into long-term projects, but face dissuasive costs from regulations including capital standards.
Insurers urge global authorities to revamp rules, help fund infrastructure
21 September 2018 9:28pm