Man from the Pru warns against effects of new insurance rules

City A.M. Reporter
GETTING new EU capital rules for insurers wrong could hinder the flow of capital in the region and hinder economic growth, a top UK insurer said yesterday.

EU states and lawmakers are due this month to restart negotiations to finalise the long-delayed Solvency II rules to make sure insurers hold enough capital to stay stable.

Tidjane Thiam, chief executive of Prudential, said it was important to have a “realistic” timetable for phasing in the new rules.

“Getting this wrong will have real consequences for our economy and for jobs, for growth and how we deal with an ageing population,” Thiam told the Association of British Insurers, which he chairs.