UK government to challenge EU over insurance rules
The UK government is set to challenge the EU commission head-on with regards to solvency II rules which are set to be introduced to the European marketplace in the short term. The UK government believes that these "over conservative" solvency rules will see UK insurance companies having to shore up their reserves by up to £50 billion. There will obviously be a cost to this additional reserve requirement, something which is likely to be met by customers.
The UK has one of the most competitive insurance markets in Europe and yet again many people are pointing the finger at the EU commission, which is determined to crack the UK financial markets and bring them under the regulatory control of the European Union. In effect this has already happened with the various treaties signed by European member states but the UK government is set to tackle this particular issue head-on as it will have a detrimental effect on the UK insurance sector, pensioners and future rates of investment return.
The issue of increasing reserve capital is a direct consequence of the credit crunch which saw a number of "solid assets" collapse like a pack of cards once the financial system began to seize up.
Profits slip for Friends Provident
Life assurance firm Friends Provident has announced a three per cent drop in pre-tax profits which could impact upon its 2008 target.The firm saw profits slump from £524 million in 2005 to last year's £509 million, despite new business profit growth in the UK reaching close to 70 per cent.However due to the "challenging protection market" the London-based insurer operates in, the firm warned tha...Read More
Post-Christmas debt blog
08/01/2014 The average family is going to take on debts this Christmas that will take until June to pay off and the Trades Union Congress has carried out research that shows that the typical UK family will have added £685 to its borrowing this festive season, in comparison with the Christmas before where one in six families borrowed money to pay for food, drinks and presents, with households b...Read More
FSA to send bonus questionnaire to UK banks
The Financial Services Authority (FSA) is in the process of finalising a questionnaire which will be sent to all UK banks asking for information regarding remuneration and bonuses. The questionnaire will contain 33 questions which will allow the FSA to get a handle on how members of staff can obtain bonuses, any guaranteed bonuses and ultimately how the system works regarding each banking institut...Read More
Christmas is a time of giving
As the festive period comes to a close and we look forward to the New Year, many people will be spending winter on the streets, homeless and in many cases struggling to find food. Perhaps this is a time when we should be looking towards the charitable sector, a sector which has been devastated by the recession and the economic turmoil in the UK, and consider how lucky many of us are to have a roof...Read More
How has the UK housing market performed over the last 30 years?
Amid concerns that the UK housing market is on the verge of a possible downward spiral it is easy to lose track of how house prices have performed over the last 30 years. If you look back to 1975, figures provided by the Nationwide Building Society, show the average UK house was valued at around £66,000. However, there has been a very rocky ride over the last 30 years with peaks and troughs in 19...Read More