14 June 2013

ABI responds to EIOPA Solvency II LTG assessment

Hugh Savill, Director of Prudential Regulation at ABI, 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."

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."

Press release

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