Transcript Nicolas Jeanmart

Nicolas Jeanmart
Head of Macro-Economics,
Life & Pensions, INSURANCE
(BELGIUM)
Friday, 27.9.2013
Securing the future of pensions: The growing
importance of supplementary pension funds
15th Hydra conference
26 – 28 September2013
Insurance Europe
Who?
European insurance and reinsurance federation,
founded in 1953
What?
Represents around 95% of European insurance market by
premium income
Why?
Committed to creation of favourable regulatory and
supervisory framework for insurers at European and
international level.
3
Members
34 national associations
27 EU member states
5 non-EU markets
Switzerland, Iceland, Norway,
Turkey, Liechtenstein
2 associate members
Serbia, San Marino
3 partners
Russia, Ukraine, Kosovo
4
Contribution to the economy
Insurance Europe represents more than 5 000 European
(re)insurers, which:
generate premium income of more than €1 100bn
employ almost one million people
invest almost €8 400bn in the economy
5
Publications
Annual Report
European Insurance
in Figures
How insurance works
Funding the future: insurers’
role as institutional investors
The impact of insurance fraud
Indirect taxation on insurance
contracts in Europe
6
What is on our agenda?
Omnibus II
Solvency II
Pensions
IORP review
IAIS
ComFrame
Anti-discrimination
Stability issues
Financial
ADR
Data protection
SIFIs
conglomerates Collective redress
Accounting
EMIR
FTT
Savings tax
FATCA
PRIPs
IMD
MiFID
Anti-money
laundering
Credit rating
agencies
Climate change
Natural
catastrophes
ELD
Offshore oil safety
7
Introduction
Pensions - overarching objectives:
 Guaranteeing the adequacy of pensions benefits
 Guaranteeing the sustainability of national pensions systems
8
Pensions’ adequacy
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Pension systems in Europe : adequacy of
pension revenue
Data Source : OECD Pensions at a glance 2011
10
Pension systems in Europe : adequacy of
pension revenue
Longer life expectancy and falling birth rates:
How to address the problem of under-provision in retirement?
Total EU annual pension gap for individuals retiring 2011-2051
2 000
1 800
According to a study, across the EU,
the annual pensions gap stands at
€1 900bn (or 19% of 2010 GDP).
1 600
1 400
1 200
The most affected countries would be
the UK (€12 300 per capita each year)
and Germany (€11 600/cap.)
1 000
800
600
400
200
0
This analysis also reveals that no
single reform can close the gap
completely on its own; non pensionassets may only fill as little as 20% of
the pensions gap.
(Source: Aviva)
Source: Aviva
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Pensions’ sustainability
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Pension systems in Europe :
Sustainability
Data Source : OECD Pensions at a glance 2012
13
Multi-Pillar systems are the solution
No pillar on its own can respond to the challenges of the coming
decades
Multiple pillar systems allow for better distribution of the risks
(demographic vs economic)
Possible to distinguish between the goals of poverty reduction and
income replacement
Pension reforms decreasing first pillar pension pay-outs could be
countered by additional supplementary retirement income
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Finding the right balance
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Pensions systems in Europe : three
pillars
Distribution between the different pillars
100%
90%
80%
70%
60%
Pillar 3
50%
Pillar 2
Pillar 1
40%
30%
20%
10%
0%
IT
FR
ES
SE
DE
NL
UK
Data Source : Insurance Europe
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Supplementary pension schemes
Supplementary pensions in absolute
numbers
120,000
Benefits paid in €m
100,000
80,000
Pillar 3
60,000
Pillar 2
40,000
20,000
0
DE
UK
NL
ES
FR
IT
SE
Data Source : Insurance Europe
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Second pillar across Europe
Data Source : Insurance Europe
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Supplementary pensions :
EU regulatory developments
Review of the IORP Directive:
level playing field between the different occupational pension providers
Same risks, same rules
Workstreams on personal pension products (PPPs)
Is their a need for a single market for PPPs?
European Commission (EC) aims for enhanced consumer protection
Insurance Europe is strongly engaged in discussions on possible
regulatory pension changes with EIOPA and the EC
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For more information
www.insuranceeurope.eu