Insurers at risk from annuity rule

Britain’s biggest life insurers are at risk of failure after the new annuity rules cut down a key source of revenue for the firms, the Bank of England’s Andrew Bulley said yesterday. “Significant potential issues include whether the viability of existing business models will be affected by the changes,” he said. Retirees no longer have to buy an annuity, and can instead take all their pension pot at one moment, in a blow to a sector based on the annuity sale.