How big a problem will Solvency II next steps be for annuities?

Annuity rates could fall by a further 20% if the next steps of Solvency II come in as planned, according to research from Deloitte. The race is on to harmonise capital requirements across Europe and provide finishing touches to the Solvency II regime. The European Insurance and Occupational Pensions Authority (EIOPA) has begun to assess the impact of different approaches to how insurers set reserves and capital for products with long term guarantees, including annuities. Surveys were sent out to insurers in January, with firms given 12 weeks to respond. A report is expected in June. ...