(LUXEMBOURG) - EU finance ministers failed on Tuesday to agree a shake-up of how the insurance sector is regulated, an official said, despite the growing sense of urgency to improve oversight of the financial sector.

The official said, on condition of anonymity, there was "no agreement" at a meeting in Luxembourg and that the ministers would revisit the issue the next time they meet in November.

The finance ministers have long struggled to agree on the update of EU insurance regulations, which is supposed to bring 14 different texts into one sole European law.

The reform has floundered on differences over how to organise oversight of the sector and the role of group supervisors and their power over subsidiaries in foreign EU countries.

Member states are divided roughly into two groups, with one in favour of more coordination at the EU level and the other eager to see supervisory powers left in national authorities' hands.

However, the financial crisis currently whipping through Europe failed to break down their differences, despite growing calls for tougher oversight of financial groups.

In addition to improving oversight, the plans also aim to boost consumer protection, encourage market integration and make European insurers more competitive abroad.

Under the proposals, insurers would be required to take account of all types of risk to which they are exposed and to manage those risks more effectively, according to the European Commission.

Economic and Financial Affairs Council (ECOFIN)

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.