Future of capital

Mark Wilson - CEO, Aviva

Aviva has a proud history of over 300 years. In the EU, we operate in the UK, Ireland, France, Italy, Spain, Poland and Lithuania. To say that radical change has taken place in these countries and across Europe during our lifetime would be saying the obvious. The world is unrecognisable.

But one thing has not changed: the need for a company like us, as an insurer and investor, to have thoughtful strategic planning; to adapt to changing circumstances; to think in the long term; and to analyse carefully the opportunities and risks ahead, so that we look after the long term success for our customers and their families.

Over the coming decades we see a new strategic risks to European and global economic growth from two sources:

  1. Unsustainable economic activity that assumes unlimited natural resources. This creates a fundamentally flawed pricing system in capital markets.
  2. Capital markets that are systematically short term. This magnifies the problems associated with a flawed pricing system.

To tackle these challenges there are four broad areas of policy action required:

  • Better information, better companies, better growth – the more of the right information that is available to investors about companies, the better the investment decisions.
  • Reward for long term success not failure – short-termism remains in incentives for those in the financial sector. We need to align incentives with long term performance and sustainability.
  • Capital for sustainable growth –Aviva believes growth has to be robust and sustainable. Policy-makers can help create that environment.
  • Increasing responsible ownership – Increasingly, we are all owners of companies through our pensions. It is crucial we all understand how our money is used to influence and encourage responsible investment.

We have produced our Sustainable Capital Markets Union manifesto  (PDF 1.6 MB) in response to the European Commission’s Capital Markets Union proposals. Our manifesto sets out the policy challenges and possible answers in relation to the four areas outlined above.

Please contact public.policy@aviva.com for more information.

Paul Novelle
Senior Public Policy Manager, Europe and International, Aviva plc
T +44 (0)20 7662 1815
M +44 (0) 7800 694 039
E paul.novelle@aviva.com

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