EU lawmaker panel adopts insurance reform

LUXEMBOURG, Oct 7 (Reuters) - A panel of European Union lawmakers adopted an overhaul of the bloc's $7 trillion euro ($9.5 trillion) insurance sector on Tuesday to streamline how big insurers are supervised and better protect policyholders.

EU states and the bloc's assembly have the final say on the Solvency II reform authored by the European Commission that will change how cross-border insurers such as Generali (GASI.MI), Aviva (AV.L), Allianz (ALVG.DE) and Axa (AXAF.PA) put aside capital to cover risks.

Parliament's economic affairs committee voted 22 in favour and seven against, with four abstentions, in a first-reading vote.

The bloc's finance ministers meeting in Luxembourg also aim to adopt a "general approach", or preliminary agreement, on the reform on Tuesday but there remain fundamental disagreements over supervision of cross-border groups.

EU president France hopes a joint deal with parliament at first reading can be reached by the year-end. (Reporting by Huw Jones, editing by Dale Hudson)