A Critical Legal Study of the Ideology Behind Solvency II PDF
Preview A Critical Legal Study of the Ideology Behind Solvency II
Economic and Financial Law & Policy – Shifting Insights & Values 4 Kristina Loguinova A Critical Legal Study of the Ideology Behind Solvency II – Economic and Financial Law & Policy Shifting Insights & Values Volume 4 SeriesEditors KoenByttebier Brussels,Belgium KimvanderBorght Brussels,Belgium This book series focuses on presenting critical legal and interdisciplinary research regarding the tools and instruments of free-market-driven societies and their economies. Forthelastfewdecades,theworldmarketshavebeeninturmoil,toalargeextent isaresultofvalueandpolicychoiceswhichhavebeenmadesincethelatemiddle ages.Asaresult,onaglobalscale,economiesandthelegalsystemsgivingformto them, have mainly if not exclusively become based on selfishness and greed, a reality which is moreover explicitly propagated by the theories of economic neo-liberalism. Ithasneverthelessbecomeclearintherecentpastthatsaidfreemarkettoolsand mechanisms – such as private money creation by banks, next to the way huge corporationsingeneralfunctionanddeterminetheoutcomeofeconomicprocesses– resultindisastrousconsequences,especiallywhenremaininguncorrectedbylawand whennotbeingsubmittedtoclearpublicpolicyinterventionmeasures. Despitetheevidenceandgrowingunderstandingofthecausesandconsequences of neoliberal policy, few alternatives for the capitalist model as currently implemented,havesofarbeenproposed. In order to meet these concerns, this book series aims at offering an outlet for variousformsofscientificresearchoutput,bothmonographsandeditedcollections. The objective ofevery bookoftheserieswill hereby betolook critically atthe legal methods and mechanisms shaping the free markets, and even to suggest alternativesforthese. Althoughthebookseriesisinitiatedbylegalscholars,itneverthelessaimstobe truly multi- and interdisciplinary. The books series therefor welcomes and will incorporate all relevant disciplines, including law, economics, philosophy, ethics, religion,psychology,sociology,anthropologyetc. Moreinformationaboutthisseriesathttp://www.springer.com/series/15643 Kristina Loguinova A Critical Legal Study of the Ideology Behind Solvency II KristinaLoguinova ECORandETAF VrijeUniversiteitBrussel Brussels,Belgium ISSN2522-5243 ISSN2522-5251 (electronic) EconomicandFinancialLaw&Policy–ShiftingInsights&Values ISBN978-3-030-26356-0 ISBN978-3-030-26357-7 (eBook) https://doi.org/10.1007/978-3-030-26357-7 ©SpringerNatureSwitzerlandAG2019 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartofthe materialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors, and the editorsare safeto assume that the adviceand informationin this bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG. Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland To the memory of my grandfather, Ludwig, who has taught me about dedication, determination and death. To my parents, who, by hook or by crook, made it possible for me to be here today. We got there in the end. And to everyone who is willing to work towards the co-existence of alternative worlds, especially Prof. Dr. Koen Byttebier and Prof. Dr. Kim van der Borght. Preface Ishallnotbeataroundthebush(atleastnotinmyPreface):Thismonographisbased ongratitude. Firstofall,IamextremelygratefultothesponsorsoftheStewardshipofFinance Chair, i.e. AG Insurance, Allianz, Ethias, P&V, Belfius and Baloise Group, for creating an opportunity to conduct research in the fields of finance and ethics. Ensuing, I am also very grateful to the supervisors of my research project, i.e. Prof. Dr. Koen Byttebier and Prof. Dr. Kim Van der Borght, for entrusting me with this opportunity that I have always regarded as an honour. It was an amazing experience which gave me a deeper insight into the subjects that I researched and, ultimately,myself.Moreover,mygratitudeknowsnoboundswhenitcomestoProf. Dr.M.Gesquiere,Prof.Dr.Gouvin,Dr.SopranoandProf.Dr.Tanegafortheirtime and,mostimportantly,theiraptcommentsandquestions. Keepingmysupervisorsinmind,Ialsowanttoexpressmyapologyforbothering them with my (obsessive) fear of death. I am content to report that as my research progressedintofinalization,myfearofdeath,onthecontrarytomyfearoffailure, decreasedsignificantly.Assuch,itwasacomfortingthoughttothinkthatoncethis researchprojectwouldbefinished,thefearwouldcompletelydisappearaswell.The thoughtwassolelycomfortingsincenocreationofthemindcaneverbeconsidered finished due to the non-existence of perfection—such was the main lesson learned whilstputtingmythoughtsandideasintowordsthatcolourthismonograph. IamcertainthatallmypastandpresentcolleaguesfromVUB’sHappyOffice— too numerous to mention individually without the risk of leaving somebody out— and Roberto Reyes-Barrera will agree with the latter point. It goes without saying that my gratitude goes out to them as well for their company and support. Most importantly,IamgratefulfortheiracceptanceofmydogMinnie—rescuedfromthe streetduringmyresearch—astheHappyOfficemascot. Another lesson learned, perhaps only true for me, is that understanding how certain functions work in Word and how to tame a printer can sometimes be more complicated than understanding intricate theories akin the chaos theory. In this respect, I am immensely grateful to Kristin Sæther Bangsund (even more so for vii viii Preface beingtheperfectarchetypeofthesupportivefriend),ThomasDeBaerdemaker,my dadandmybrotherfortheirtimeandpatience. When it comes to other practical matters,not directly linked tomy research but nevertheless of great importance to it, I would like to express my gratitude to the following individuals for their assistance: Prof. Dr. Rauws, Prof. Dr. Régine Feltkamp,Prof. Dr.KarenFrançois,Ann Maertens, MiekeVyncke,SaskiaSegers, Sarah Van Boxsom, Micheline Rooselaers, Nele De Clercq, Dennis Hermans, Manuela Schwietzer, the entire staff of the VUB library (including the staff of its IBL-service), my mother and my grandmothers. There are also three enterprises in thiscontextthatIamverygratefulto.Firstofall,IwouldliketothankCup28for brewingdeliciouscoffee.Secondly,IwouldliketothankBasic-FitBrusselsLouise forbeingopen24/24fromMondaytoThursday;IamsureIwouldnothavemade anyprogressinmywritingifIcouldnottakemyfrustrationsoutonthetreadmillat anypointaftermidnight.Thirdly,Iwouldliketothank theCrazy CopyCenterfor beingsoeasy-going. Furthermore, I would like to thank Prof. Dr. Henri Swennen, Prof. Dr. Philip Colle, Dr. Jean-Louis Baudoin, Paul Windels (Assuralia), Sophie Misselyn (P&V) andDirkCoeckelberghfortheirinsights.IamprincipallythankfultoPhilipLahey forlookingbeyondappearances(justanothermasquerade)andgivingmeachance totransformmyacademicknowledgeaboutinsuranceintoskillsalignedwiththeart ofconsultancy. However,mybiggestexpressionofgratitudegoestotheMultidisciplinarybreast centre of the University of Leuven and all the specialists involved in my mother’s case, including Prof. Dr. Hans Wildiers, Prof. Dr. Ann Smeets, Prof. Dr. Ines Nevelsteen, Prof. Dr. Caroline Weltens, Prof. Dr. Hilde Janssen and Lienke Vandezande. I would like to thank you all from the bottom of my heart for everything you all have done for my mother and for having such a humane and delicateapproachtotheentiresituation.Particularly,IwouldliketothankDr.Kevin Punie:Thanksforthehopeinwhatseemedtobeahopelesssituation.Idonotknow wheremyfamilywouldbetodaywithoutyourhelpandoncologicalexpertise. Allinall,thankstoall. Brussels,Belgium KristinaLoguinova 23May2019 Contents 1 GeneralIntroduction. . . . . . . . .. . . . . . . .. . . . . . . . .. . . . . . . . .. 1 1.1 ResearchQuestionsandStatementofIntent. . . . . . . . . . . . . . 8 1.2 ResearchApproachandResearchMethod. . . . . . . . . . . . . . . . 10 1.3 ScopeoftheResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1.4 Addendum:FirstCriticalLegalStudyofSolvencyII’s Ideology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Bibliography. .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 13 PartI BeingaBroadlyInformedGeneralizer:TheResearchOntology 2 IntroductiontoPartI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Bibliography. .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 24 3 TheResearchApproach:CLS. .. . . . . . . . . . . . . . . . . . . . . . . . .. . 25 3.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.2 Plucking“theMaskofMysteryfromtheFace ofJurisprudence”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3.2.1 AnExplicationoftheMysteriousness ofJurisprudence. . . . .. . . . . . . . . . . . . . . . . . . . . . . 26 3.2.2 TakingaStandinJurisprudence:Inclination TowardsBroadJurisprudenceandMethodological Syncretism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3.2.3 TheCaseforBroadJurisprudence. . . . . . . . . . . . . . . 40 3.3 AJurisprudentialSchoolofThoughtAfterAll:CriticalLegal Studies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3.3.1 IntroductionAccompaniedbyaPreludetoCritical LegalStudieswithJustificationsforItsUtilization. . . 46 3.3.2 TheOriginsandPresentStateofCLS. . . . . . . . . . . . 53 3.4 TheRelevantThemesofCLS. . . . . . . . . . . . . . . . . . . . . . . . 61 3.4.1 TheMainCommonTheme:HostilityTowards OrthodoxyandNeutrality. . . . . . . . . . . . . . . . . . . . . 61 3.4.1.1 LawandPoliticsofEitherGoodorEvil. . . 71 ix x Contents 3.4.1.2 ReconcilingCLSwithGoodandEvil. . . . . 109 3.4.1.3 ThePoliticalEconomyofLaw. . . . .. . . . . 116 3.4.1.4 TheMarketasanExchangeofGoods andServices(Specialization). . . . . . . . . . . 128 3.4.2 TwoMainCLSDefinitionsofLaw. . . . . . . . . . . . . . 137 3.4.2.1 TheRelevantCLSDefinitionofLaw. . . . . 144 3.4.2.2 Specialized,DetailedandTechnical Languagein(Financial)Law. . . . . . . . . . . 164 3.4.3 TheMany(Historical)MeaningsofIdeology. . . . . . . 166 3.4.4 TheCustomizedMeaningofIdeologyandIts ConnectiontoLaw. . . . . . . . . . . . . . . . . . . . . . . . . . 179 3.5 TheRelevantTechniquesofCLS. . . . . . . . . . . . . . . . . . . . . . 189 3.5.1 TheMainTechnique:CritiqueAccompanied byGenealogy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 3.5.2 MethodologicalTrashingofIdeology. . . . . . . . . . . . 192 Bibliography. .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 194 4 TheResearchMethod:LawReformDesign. . . . . . . . . . . . . . . . . . 209 Bibliography. .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 215 5 Self-criticism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Bibliography. .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 220 6 ConcludingSummaryofPartIwithaSchematicRepresentative StructureofChaoticReality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Reference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 PartII BeingaSpecializedInvestigatorandLawReformDesigner: ThePoliticalEconomyofSolvencyII 7 IntroductiontoPartII. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 Bibliography. .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. 229 8 APreludetoSolvencyII. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 8.1 TheSolvencyofInsuranceUndertakingsEstablishedonEU Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 8.2 TheSpecialSortofBusinessofInsuranceUndertakings andTheirSpecialConsumers(Micro-level). . . . . . . . . . . . . . . 244 8.3 TheMarketofInsuranceUndertakingsEstablishedonEU Territory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 8.3.1 TheEvolutionfromCommonMarkettoInternal Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 250 8.3.2 GreaterSupportofEconomism. . . . . . . . . . . . . . . . . 255 8.3.3 TheInternalInsuranceMarket:TheEvolution oftheMarketfromSolvencyItoSolvencyII. . . . . . . 257
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