Insurance
Britain to push for easing of EU insurance rules
(Reuters) - The British government will push for a relaxation of draft EU rules which could force UK insurers to bolster reserves by 50 billion pounds ($82.88 billion), financial services minister Paul Myners said.
The government wants to make sure the proposed Solvency II rules do not result in higher costs for pensioners as insurers seek to meet “excessively conservative” capital requirements, Myners said on Thursday in a speech to the Association of British Insurers.
“We absolutely cannot allow this to happen,” Myners said.
“Government is committed to ensuring that these regulatory reforms do not unintentionally impact the lives and wellbeing of pensioners in the UK and elsewhere in Europe.”
As currently drafted, Solvency II would force annuity providers to hold extra capital as a reserve in case of declines in the value of the corporate bonds they use to fund payments to their customers.
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