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Daily Insurance Industry News
Friday 25th of May 2018
March 2, 2012

ABI: EU solvency rules threaten UK economy

by Gill Montia

Story link: ABI: EU solvency rules threaten UK economy

The Association of British Insurers (ABI) has warned that new EU solvency rules must not be allowed to deter the industry’s long-term growth, and its investment in the UK economy.

In a speech yesterday to the Economist Insurance Summit, ABI director general, Otto Thoresen, highlighted challenges posed by draft Solvency II rules to the UK pension annuity market, and their potential to curb insurers’ long-term investment.

On the Matching Premium, Mr Thoresen called for urgent clarification and expansion on the draft wording, so that insurers can play a major role in infrastructure investing as outlined in the Chancellor’s autumn statement last year.

The director general also flagged up as imperative the need for insurers, whether from the UK or other European countries, to be able to do business across the globe on a broadly level playing field, and not be placed at a competitive disadvantage to local players in international markets.

Mr Thoresen’s comments came days after reports that Prudential is considering relocating its headquarters to Hong Kong.

The insurer responded to the speculation saying: “There continues to be uncertainty in relation to the implementation of Solvency II and implications for the Group’s businesses.”

 

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