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Peter Skinner, member of the European Parliament , welcomed the vote. He said: “This is a strong commitment, which is essential and which sets the scene for modern insurance supervision across the EU and perhaps as a model for the rest of the world.”

Elements of the first reading vote included approval of a group supervision regime and of group support – transfer of funds at time of distress – which allows local supervisors a key role working alongside groups supervisors.

There was also a new element involving the committee in a mediation role which would deliver a verdict on any dispute, forcing a group supervisor to “comply or explain”.

In addition to this, there was a minimum capital requirement “set at a realistic level” and which allows for the development of internal models which must be “safe and reliable”. The vote comes ahead of the Ecofin Council meeting which has so far failed to agree on a text for the Council.