(Bloomberg) — Insurers in Europe, which manage about 8.5 trillion euros ($11.2 trillion) of client money, say their role as long-term investors may be hurt by new regulation.

Planned new risk-based rules for insurers in the European Union, dubbed Solvency II, "still require the companies to hold inappropriately high amounts of capital against their long-term investments," Michaela Koller, director general of industry lobby group Insurance Europe, said in a statement.

"This will make it more expensive for insurers to invest in long-term government and corporate bonds, as well as growth-stimulating activities, such as infrastructure projects," Koller said.

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