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interestrateripoff

Eu Insurance Watchdog Warns On Low Interest Rate Threat

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http://uk.reuters.com/article/2014/11/30/uk-europe-insurance-stress-idUKKCN0JE0RL20141130

Some European insurers could have trouble meeting financial obligations to policy holders in the coming years if rock bottom interest rates persist, the EU's insurance watchdog EIOPA warned on Sunday.

"A continuation of the current low yield conditions could see some insurers having problems in fulfilling their promises to policy holders in 8-11 years' time," the European Insurance and Occupational Pensions Authority (EIOPA) said in a statement.

The watchdog has spent the last seven months testing how well insurers' capital safety buffers hold up against hypothetical challenges, to determine whether policy holders could be at risk in a financial meltdown.

I'm sure the central banks can just print to meet the liabilities, when the banking system was on the brink the printing press was turned on and rates lowered to rescue the financial system....

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The ABI association of British insurers said in a statement that EIOPA's tests demonstrated that the European industry was "well placed ... and ready to cope with the extreme situations tested."

"Well placed" - also known as having the British government in its pocket.

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