Insurers' Policy Change Set to Excite [Edition 2]
Evening Standard - London › July 09, 2009
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Summary
IN a week when the Government has proposed tougher capital requirements for banks, it is instructive to see the effect of a similar directive applied elsewhere.
When the banking crisis broke, and it was widely assumed they would all go bust, people looked to see who were the big holders of banking bonds and therefore likely to face large losses. They found their answer in the life assurance industry, and as a result fears about bank insolvency transferred wholesale to the insurance sector. The shares were duly trashed.See the full content of this document
Extract
Insurers' Policy Change Set to Excite [Edition 2]
Enter the Financial Services Authority, unnerved by the signals from the market but determined no insurance company would be deemed insolvent in its watch. So capital requirements were toughened, just as the Government now proposes t...
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