ABI scripts Solvency II horror story
The Association of British Insurers has written to Chancellor of the Exchequer, Alistair Darling, warning that the UK insurance industry may need to raise up to £50 billion from investors if proposed EU regulation is adopted in its current form.
The body describes the measures under consideration in the Solvency II directive as “extreme” and posing a threat to British insurers by demanding increased capital and reserves totalling between £30 billion and £70 billion.
According to a report in the Financial Times, which has had sight of the letter, ABI director general, Stephen Hadrill, states that the “huge over-capitalisation” will reduce investment returns in the insurance sector, leading to companies abandoning the market.
He also predicts that increased premiums, reduced cover and less innovation will follow.
The changes are due to come into force in 2012.
Category: ABI News, Insurance News
Visited 2795 times, 3 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.