Reforming European Union insurance rules to release billions of pounds of capital is a key part of the UK government’s program to boost the economy. The market turmoil unleashed by the mini-budget may make such ambitions harder to deliver.
The combination of rising interest rates and jitters triggered by the near blowup in liability-driven pension funds could undermine the government’s efforts to roll back EU-era Solvency II rules, making it more difficult to hit its targets for growth, according to several financial and regulatory experts.
