For instance, according to estimates from the European Commission and the Economic Policy Committee’s Ageing Working Group, the potential growth rate of output in the euro area could fall from 2.1% on average over the period 2004-2010 to 1.2% on average over the period 2031-2050 5 accompanied by significant declines in savings and investment rates.
This is also a landmark year for the insurance sector, with the Solvency II framework going live. The “whole balance sheet” approach to capital calculation combined with the strong emphasis on a firm’s risk management and supervisory review will result in a muchtransformed regulatory and supervisory framework.