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.
Bank of England cuts economic growth forecast
The Bank of England has today reined in its economic growth outlook for the UK with a suggestion that it may take up to two years for inflation to fall back below the 2% level and UK economic growth is unlikely to peak at 3.6% in the short to medium term but could peak at 3%. While these reductions in growth forecast do not go as far as many analysts had expected, they do show that the UK economic...Read More
Brown And The £40 Billion Bail Out (Part Two)
The £40 billion bail out plan by Gordon Brown (heavily hinted upon but not actually confirmed as yet) is a massive risk to the UK tax payer. This is after the £20 billion plus which was used to bail out the dead in the water Northern Rock and the risk that this will not be repaid in full. So is it fair?
There are two things to consider with this possible £40 billion bail out, t...
Housing market slowing down
29/07/2014 The UK housing market finally appears to be slowing down as seven of the 10 regions in England and Wales recorded a month-on-month fall in house prices, according to the Land Registry. However, despite price reductions in more than half of the regions in England and Wales, the overall average house price remained unchanged from May to June 2014. The data showed that the biggest...Read More
Buy to let investors urged to review home insurance
Landlords whose property portfolios have increased in value over the last year should act now to review their home insurance cover, Sainsbury's Home Insurance has advised. Research conducted by the home insurance provider shows that at the end of 2006, the cumulative value of rental property stood at £571.38 billion. However, as a result of price inflation over 2007, this now stands at £641 bill...Read More
43% of Brits leave half of letters unopened
03/03/2015 Almost half of people in the UK don’t open all the letters they receive in their post, partly due to avoiding bank statements or bills. 46% of UK adults have admitted in a new survey from the Debt Advisory Centre that they do not open all their post. The people surveyed advised that their unopened post goes straight into the bin or the shredder. Junk mail tops the list of m...Read More