EU regulations dubbed a ‘mess’ and an ‘outrage’
Bosses at insurer Legal & General (L&G) have hit out at two forthcoming European regulations – Solvency II and the ECJ gender ruling.
Speaking to the Telegraph, outgoing L&G chief executive Tim Breedon called Solvency II a “mess” and said UK insurers were becoming increasingly frustrated with the proposals for the new capital regime, due to come into force in 2014.
His comments come amid threats from life insurer Prudential to quit the UK for Hong Kong because of the effects Solvency II will have on its US business, Jackson National Life.
Breedon told the Telegraph that most of the extra time to implement Solvency II caused by delays had been frittered away quibbling about the details of the proposed regulation. “Uncertainty is high across the industry.”
Meanwhile, executive director of risk at L&G John Pollock has branded the ECJ gender directive an “outrage”.
The ruling, which will come into force on 21 December this year, will prevent insurers from pricing insurance according to the sex of the policyholder. This is expected to boost premiums for women, who have so far enjoyed cheaper premiums from insurers because of their safer driving records on average.
‘It will make us entirely powerless to differentiate between risk for male and female customers. It’s completely inappropriate,’ Pollock told Thisismoney.co.uk.
Labour has estimated that the introduction of the ECJ gender ruling could raise premiums per policy by as much as £362 for women.
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