Insurers play a number of important roles in our society:
- They encourage better risk management in society and protect policyholders when the worst happens.
- This protection provides individuals and businesses with the confidence to engage in economic activity, which leads to growth.
- Insurers also stimulate economic growth and stability through making longterm investments, which came to around €8 500bn in 2013.
A healthy insurance industry is, therefore, required for economic growth to happen. To remain healthy the insurance industry requires effective and appropriate regulation. To support growth, insurance regulation needs to be strong enough to protect policyholders, but not so prescriptive as to stop insurers from supporting economic activity through the products they provide and the investments that they make.