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.
European financial sector under pressure
The European Central Bank (ECB) has this evening warned EU insurance companies that a mixture of weak European economies and significant volatility in the financial markets could push many towards the edge of financial distress. Despite the fact that the European economy on the whole had initially performed better than the likes of the UK and the US when the credit crunch began, it appears to be g...Read More
Royal London calls for independent pensions commission
Royal London, the UK’s largest mutual insurer, has called for a new independent commission to improve and set the direction of policy on pensions, retirement income, and later life financial provision. The insurer would also like the commission to concentrate not only on pensions and retirement but on all the issues facing the crowing elderly population in the UK today. Costs of care are inc...Read More
Greek debt problems worse than expected
A report in the financial press today has suggested that Greece will require between EUR100 billion and EUR120 billion over the next three years to repair the damage done by the financial crisis. These figures were made public by German parliamentarians in what is an embarrassment for the European Union which is currently negotiating a EUR45 billion package. It is believed that the EUR45 billio...Read More
ISA-holders lean towards green
Environmentally-sound investments have become immensely popular, a recent report has shown - and the 'green' investment trend is set to continue.Nearly 70 per cent of ISA-holders are more than happy to invest in environmentally-friendly schemes, according to studies by Co-operative Financial Services (CFS). For the first ever time, a green unit trusts fund has topped the UK All Companies sector of...Read More
Consumer confidence hits a new low on the UK high streets
Over the last few days we have seen a number of consumer surveys which have indicated a further fall in consumer confidence in the UK. This news together with recent confirmation that life is tough on the high street does not bode well for the UK economy in the short to medium term. This drop in confidence has been further exacerbated by a rise in the unemployment numbers in the UK with many feari...Read More