The Financial Market Authority FMA wishes to correct the false and completely distorted portrayal of the planned regulation on profit sharing in the health insurance sector which was provided by leading representatives of the Austrian insurance industry during a press conference of the Austrian Association of Insurance Companies (VVO):
- As the name “regulation on profit sharing” suggests, the existing generational burden sharing in the health insurance system will remain untouched; it is a question of ensuring a fair, transparent and clear apportionment of the contractually-guaranteed share in the profits from health insurance between shareholders and insurance customers. An insurance company will never be able to derive an increase in premiums from fair, transparent and clear profit-sharing, unless it has previously illegally accessed shares in profits to which customers were contractually entitled.
- In contrast to the claims made by insurance executives, the Austrian Insurance Supervision Act (VAG) stipulates that the protection of consumers shall be the top priority of the FMA, meaning the protection of all those insured.
- It should be emphasised at this point that the FMA only issues regulations when it has a statutory obligation to do so, or when it has discovered serious irregularities during its supervisory activities.
- The FMA will of course offer the insurance sector the opportunity to comment on the draft version during the assessment process before the regulation is enacted.
Besides, the FMA wishes to make it clear that, as the law stipulates, the costs for its supervisory activities are transferred to those being supervised in accordance with the principle that the costs should be allocated to the originator. The insurance industry thus – contrary to its claims – does not contribute a single cent to the supervision of the banking sector. Furthermore, the insurance industry did not pay EUR 5.3 million for the supervisory activities of the FMA in 2005 as claimed in the press conference, but only EUR 4.032 million exactly. The figure for 2006 is not available, as the financial statements of the FMA for last year have not yet been completed.
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516