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.
Home insurance shortfall highlighted by Axa
There is a £255 billion insurance gap for home contents cover in the UK, new figures from Axa suggest.The home insurance provider said that the average policy covers contents worth around £29,000.However, the average valuation of these contents from homeowners comes to £38,000 - leaving a £9,000 gap.This shortfall could potentially cause problems for policyholders who either have their home co...Read More
Cameron and Brown present different solutions
Yesterday's CBI conference was the venue for two very different speeches by Gordon Brown and David Cameron. In effect the two party leaders were looking to woo UK business leaders with a number of pledges for the future and a promise to restore the UK economy to its former glory. So who came through? Gordon Brown again reiterated that the UK government is looking to half the current budget defi...Read More
400,000 stranded without salary
The bank payments body Apacs is struggling today to address problems caused by a major technical hitch, which could mean that up to 400,000 people will not receive their end-of-the month salary.The data corruption issue, which came to light on Thursday night, may mean that customers are unable to withdraw cash from ATM machines, although they could still use branch counters for transactions.Despit...Read More
Is British Airways giving too much away?
Despite the fact that British Airways shareholders will hold 55% of the enlarged British Airways/Iberia partnership, it has been revealed that the company will be domiciled in Spain for tax reasons and all shareholder and board meetings will be held in Spain. This is a blow for British Airways and the 188,000 small investors who hold shares in the company as they will have to pay for their own tra...Read More
Is it time to nationalise Royal Bank of Scotland?
The UK government appears intent on throwing billions upon billions of pounds towards the Royal Bank of Scotland with other financial operations such as Lloyds Bank apparently been left in the lurch. For some reason the Royal Bank of Scotland seems to be taken precedence over everything else in sector and there are serious concerns that too much focus is being placed upon the once leading Scottish...Read More