More private capital for stronger competitiveness
What does the future of the insurance industry look like in the new EU legislative period? This question was the focus of a GDV event in Brussels. Members of the European Parliament Rasmus Andresen and Aura Salla, together with Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV), discussed how Europe’s role in global competition can be strengthened. The participants highlighted critical areas for action, especially in sustainability, digitalization, and the strengthening of capital markets.
Europe is losing competitiveness
Jörg Asmussen opened the discussion with a critical assessment of Europe’s current situation. He observed that ,in particular, the big member states in the center of the EU have fallen behind in global competition—unlike during the financial crisis, when problems in the periphery of Europe dominated the agenda. He emphasized that this loss of competitiveness is especially alarming for the European economy. This, he explained, is due in part to slow progress on key issues such as the Capital Markets Union. Asmussen pointed to the fragmented insolvency laws as an example, noting that this hinders investors from making cross-border investments.
Overcoming national self-interest is also crucial for improving Europe’s competitiveness compared to other regions. In this context, the sustainable transformation is a key aspect, which Asmussen described as a “very important factor in any decision”.
Cutting red tape as a lever for more investment
Aura Salla stressed the need to focus equally on sustainability and growth. However, she criticized some of the proposals currently under discussion to meetinvestment needs, stating that direct subsidies are not the right path to strengthen Europe’s competitiveness. Instead, reducing bureaucracy should be prioritized to make Europe more attractive for private investors. "The devil is in the details," Salla remarked—greater attention must be paid to efficiency, rather than investing in projects without clear objectives.
Salla also highlighted that regulation, risk capital, and skills are crucial for a stable and future-proof economy. Another key aspect is streamlining the EU’s administration: “We don’t need 27 EU Commissioners”, she said, calling for a consolidation of structures.
Clear implementation rather than new rules
Rasmus Andresen emphasized the importance of the Green Deal and the green transition. For him, it is crucial that existing regulations are implemented consistently, rather than introducing new laws. “We need to focus on climate risks and ensure the quality of investments”, Andresen said. At the same time, he called for more transparency and warned against unnecessary bureaucracy, which often slow down competitiveness, particularly in the financial sector.
Protection gaps: PPPs as a solution
Another key topic was the so-called protection gaps—gaps in coverage, such as for retirement provision, cyber risks, or natural disasters. Asmussen and Andresen agreed that public-private partnerships (PPPs) are essential to addressing these gaps. In the area of cybersecurity, for example, the private sector alone cannot provide the solution. “We need more cooperation between the state and businesses to close these gaps,” Asmussen emphasized.
Alongside PPPs, the need for more investment in prevention at the European level—especially regarding natural disasters—was also stressed. One potential solution could be a review of the EU Floods Directive to strengthen preventive measures against natural hazards. Europe must be better prepared for climate change.