Despite an increasingly busy fourth quarter for many in the industry, it is unlikely to have escaped too many people's notice that the possible impact of the "Solvency II" directive on annuities is already attracting a lot of negative and nervous attention.
The European Union's (EU's) Solvency II Directive claims to provide a ‘comprehensive new framework for insurance supervision and regulation', introducing across the EU a more risk-based approach to supervision and capital assessment, using market-based valuation of assets and liabilities. The Directive was agreed in May 2009 and the Association of British Insurers (ABI) initially showed its support for the legislation based on its belief it "has the potential to create a stronger single market for insurance across Europe...
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