Opinion of the European Central Bank of 23 June 1999 at the request of the Commission of the European Communities on a draft Commission Regulation (EC) laying down detailed rules for the implementation of Council Regulation (EC) No 2494/95 as regards minimum standards for the treatment of insurance in the Harmonised Index of Consumer Prices and modifying Commission Regulation (EC) No 2214/96 (CON/99/06)
Date: 1999-06-23
Institutions: European Central Bank
Subjects: European Central Bank, consumer price, goods and services, harmonisation of prices, insurance, price index

C 252/4

EN

Official Journal of the European Communities

3.9.1999

EUROPEAN CENTRAL BANK

OPINION OF THE EUROPEAN CENTRAL BANK

of 23 June 1999

at the request of the Commission of the European Communities on a draft Commission Regu-
lation (EC) laying down detailed rules for the implementation of Council Regulation (EC) No
2494/95 as regards minimum standards for the treatment of insurance in the Harmonised Index
of Consumer Prices and modifying Commission Regulation (EC) No 2214/96

(CON/99/06)

(1999/C 252/05)

1. On 30 March 1999 the European Central Bank (ECB)
received a request from the European Commission for an
ECB opinion on a draft Commission Regulation (EC)
concerning minimum standards
treatment of
insurance in the Harmonised Index of Consumer Prices
(HICP) (hereinafter referred to as the (cid:145)draft Regulation(cid:146)).

the

for

2. The ECB’s competence to deliver an opinion is based on
the Treaty establishing the European
Article 105(4) of
Community and Article 5(3) of Council Regulation (EC)
No 2494/95 of 23 October 1995 concerning harmonised
indices of consumer prices. In accordance with Article 17.5,
first sentence, of the Rules of Procedure of the European
Central Bank, this ECB opinion has been adopted by the
Governing Council of the ECB.

3. The objective of

the draft Regulation is

to establish
minimum standards for the treatment of insurance in the
HICP. Insurance is partly included in the initial coverage of
HICPs. According to Council Regulation (EC) No 1687/98 of
20 July 1998 amending Commission Regulation (EC) No
1749/96 concerning the coverage of goods and services of
the harmonised index of consumer prices, the coverage of
insurance will be extended in December 1999. Moreover,
this Council Regulation requires that the methodological
details and the timetable for the extension of coverage
shall be specified in accordance with the procedure laid
down in Article 14 of Council Regulation (EC) No
2494/95. The draft Regulation lays down a methodology

for the treatment of all insurance services covered by the
HICP.

for

insurance is

4. The draft Regulation stipulates two main principles. The
limited to the implicit
index weight
service charge which is paid by households for insurance
policies as part of the total premium. The index price for
insurance changes in line with the gross insurance premium
for a specific policy paid by households. Moreover, the draft
Regulation sets standards for the quality adjustment of
insurance prices
index-linked
insurance policies. The ECB supports the rules proposed
by the Commission, since they enhance the comparability
of HICPs.

treatment of

and

the

5. The draft Regulation does not contain an explicit reference
date from which the proposed rules are to be applied. The
ECB assumes
from
December 1999 for all HICPs, corresponding to the date
for the inclusion in HICPs of a broader range of insurance
services.

the rules will be applied as

that

6. This ECB opinion will be published in the Official Journal of

the European Communities.

Done at Frankfurt am Main on 23 June 1999.

The Vice-President of the ECB

C. NOYER