2011-09-27
In a letter that FI sent to all insurance undertakings today, FI states that, given the current stressed situation on the market, it would like insurance undertakings to review their guaranteed commitments and ensure that their promises to customers are sustainable in the long run.
In exchange, as long as policyholder interests are not acutely threatened, FI can grant the undertakings a considerable period of time to handle the situation.
FI is currently concerned that the uncertain market conditions will result in undertakings continuing to purchase government bonds, which risks adding further stress to an already stressed situation.
FI's letter to the insurance letter can be found below in its entirety.
