FSA seeks to beef up protection for unit-linked policyholders

Unit-linked policies are used within individual pensions, endowments, investment bonds and whole of life insurance policies. They are also used as investments for defined contribution (DC) and defined benefit (DB) occupational pensions. Policyholders, and not the insurer, suffer detriment if the assets backing the policies turn out to be inappropriately risky. Under the proposed new rules, the regulator will implement high-level requirements from European legislation Solvency II which strengthens current rules stating insurers should only invest in assets they can properly value and m...