Solvency II will hit UK insurers
Most British insurers expect to spend £500,000 complying with new European Union solvency rules, according to a survey by accountants BDO Stoy Hayward.
It found 61 per cent of respondents put the cost of complying with the so-called Solvency II regime at £500,000 while 19 percent predicted costs in excess of £1m.
Solvency II, scheduled to come into force in October 2012, will oblige insurers across the EU to match their capital reserves more closely to the level of insurance and investment risk they take on.