The UK's FSA has moved to lighten the load on the insurance sector by speeding changes to the industry's solvency rules, according to the Financial Times.
The business daily revealed that the current solvency regulations have been blamed for creating a 'vicious circle' of selling, as falling markets have forced insurers to offload equity holdings.
According to the FT report: 'The FSA on Wednesday accelerated its move towards more 'realistic' measurement of life assurers' finances by writing to the chief executives of 250 life offices, inviting them to apply for individual waivers from the current insolvency rules.'
However, in order to secure a waiver, the FSA announced, companies will need to: 'demonstrate to us that they are holding sufficient financial resources to meet expected liabilities, even under adverse conditions.'
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