Financial Times FT.com

New European rules ‘will force up premiums’

By Paul J. Davies, Insurance Correspondent

Published: September 1 2009 23:36 | Last updated: September 1 2009 23:36

UK insurers fear they will be forced to tap investors for more than £50bn in fresh equity as a result of proposed new European rules that they warn would lead to a dramatic increase in premium rates.

In a startling letter to Alistair Darling, UK chancellor, the leading UK industry trade body warned the “extreme” proposals could destabilise the industry across Europe.

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