UK general insurers face £13bn rise in capital needed
Actuarial consultants EMB says UK property and casualty insurers face a €15bn (£13bn) jump in capital requirements under proposed Solvency II rules due to come into force in 2012, the FT reports.
It said UK non-life insurers faced an average solvency capital requirement increase of 62% as a result of changes proposed to rules during the past six months.
"Apart from the scale of the increases, what we have also noticed is that size doesn't matter in this case - larger firms are affected just as much as smaller ones," said Raj Ahuja, a partner at EMB.
Slow FSA compliance
Just 120 of the 700 non-life insurers regulated by the Financial Services Authority, had put forward internal models for approval.
"In Europe, the effects are likely to be worse because the sophistication of risk management techniques and of local regulators is behind the UK," he said.
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