21 July 2008
Experts have voiced concerns that annuity providers face
potential capital shortfalls under wide-ranging new European
insurance regulations.
New solvency rules which are due to come into force in 2012 are
designed to match insurers' capital more closely to their risks.
However, a recent test of the effect the new laws would have on
insurers revealed that annuity providers would have to support
their annuity contracts with substantially more capital.
