Association of British Insurers (ABI) has responded to the results of the European Insurance and Occupational Pensions Authority's (EIOPA) Solvency II (Long Term Guarentee) assessment.
Hugh Savill, Director of Prudential Regulation, Association of British Insurers, said:
“The EIOPA report is a small step in the right direction. But there is still a long way to go before British pensioners can be confident of a reasonable deal on their annuities.”
“We are relieved that this report recognises the importance of the Matching Adjustment without which the higher capital requirements would mean lower annuity levels for future pensioners. However there remain significant improvements needed.
"Final decisions need to be taken at a political level. Over the next few weeks we will see whether the regulators in EIOPA have laid enough of a foundation for politicians to build on."
- EIOPA chairman Gabriel Bernadino will join a panel of speakers to discuss the future challenges for insurers at the ABI's major insurance strategy conference, “Meeting the Challenges of a Changing World,” which will take place on 9 July in London in partnership with KPMG. Click here to view the full conference agenda and reserve your place.