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THE REGULATION OF LIFE ASSURERS IN A LOW SOLVENCY ENVIRONMENT: THE UK EXPERIENCE
Author(s) -
O'Brien Chris
Publication year - 2003
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00425
Subject(s) - solvency , business , financial services , finance , solvency ratio , actuarial science , accounting , market liquidity
When adverse financial conditions mean that many life assurers have sharply reduced solvency levels, a number of new issues arise for regulators, including the basic issue of how solvency is measured. There are also issues about life assurers' investments, and their products and how they are priced. Lastly, the regulator (in the UK, the Financial Services Authority) needs to ensure that customers and their advisers have suitable information about the solvency of the firms they are dealing with.