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.
Alistair Darling gambles with banking super tax
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FTSE 100 loses 300 points since the turn of the year
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Bank holds interest rates
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Cancer sufferers charged more for travel cover?
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The gap between public and private sector pay continues to widen
In a damning indictment of the ever-growing size of the U.K.'s public sector it has been revealed that on average workers in the public sector are paid £2,000 a year more than their counterparts in the private sector. The average public sector worker now brings in around £23,660 year compared to £21,528 year for those in the private sector. This is the first time that the gap between the two se...Read More