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Bank of England Worried New Insurance Capital Rules Could Risk Policyholder Bailout

January 17, 2023

Britain’s proposed changes to capital rules for insurers could lead to the government having to bail out policyholders, as happened 20 years ago after the near-collapse of life assurance company Equitable Life, the Bank of England said on Monday.

Late last year Britain’s finance ministry overrode the BoE and proposed looser rules for insurers and related investment companies which it said would help the sector to invest in infrastructure and boost economic growth.

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