Trichet: regulate insurers

City A.M. Reporter
JEAN-CLAUDE Trichet, president of the European Central Bank, has thrown his weight behind proposals to tighten the regulation of insurance companies.<br /><br />Trichet said large insurers should be considered &ldquo;systemically relevant&rdquo; because of their size and reach, despite the lack of solvency concerns in the industry.<br /><br />Calling on authorities to urgently agree a new European supervisory framework, Trichet said: &ldquo;There is no room for complacency in this environment. Insurers will have to be mindful of having sufficient capital buffers in place.&rdquo;<br /><br />His comments follow improved results from insurers over recent months. Speaking at a conference in Frankfurt, Trichet said there were reasons to be cautious about the sustainability of the profits and said the supportive environment for investment income would not continue.<br />