BOE Said Uneasy About Foreign Insurers' Pension Liability Deals
- BOE monitoring insurers outside EU who can avoid Solvency II
- At least 10 deals in past two years won by non-EU reinsurers
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The Bank of England is monitoring insurers from outside the European Union that are winning pension liability business in the U.K., a person familiar with the matter said.
By not having to comply with Solvency II regulations, insurers from outside the 28-nation political bloc can offer lower reinsurance pricing by holding less capital against longevity risk. The BOE is uneasy because it wants to ensure that policyholders are protected if the balance sheet of a non-EU insurer comes under pressure, said the person, who asked not to be identified because the matter is private. A spokeswoman for the BOE declined to comment.