ABI News Release

Tuesday, 21 January 1997 Ref:

LATEST ISSUE OF "INSURANCE TRENDS" GIVES FIRST ESTIMATE OF COST TO UK INSURERS OF JOINING EMU

The first industry-wide estimates of the cost to UK insurers of Economic and Monetary Union (EMU) are published today in the latest issue of "Insurance Trends", the Association of British Insurers' quarterly statistics and research review.

ABI estimates suggest that the cost to the industry are likely to be in the region of £1 billion. This estimate, the best available at present, is based on a small sample of companies; and is likely to be revised as more information becomes available. If the UK remains out of an EMU, costs are lower but vary between companies, depending on the type of company and on strategic decisions.

The article also summarises the key features of the transition period, examines the work done to date by the financial sector, including the insurance industry, to accommodate the euro, and outlines two examples of the work of foreign insurance companies.

Other articles in the twelfth issue of "Insurance Trends" are:

  • Legal Expenses Insurance: Past, Present and Future - This article describes the current state of the LEI market in the UK, and considers how currently proposed reforms of the legal system might provide a boost to LEI.
  • The Pensioners' Incomes Series 1994/5 - shows how pensioners' incomes have risen since 1979. It looks at sub-groups of pensioners, and considers income components - showing that occupational pensions have contributed the most to the rise in incomes.
  • Research Review - looks at "Employers' Pension Provision 1994". This Department of Social Security Research Report considers a survey of employers' pensions, the first of its type to cover a fully representative sample of private sector employing organisations in Great Britain.



Notes


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