ABI: no guaranteed annuity crisis.

The Association of British Insurers has sought to play down the growing concern about guaranteed ann...

The Association of British Insurers has sought to play down the
growing concern about guaranteed annuities.


In line with falling gilt yields, annuity rates have remained on a
downward path. At the time of going to press the rate was standing at
about 7%.


This fall is forcing life offices to reassess their reserving to ensure
they have enough money to cover the growing costs of guarantees.


The Government Actuary's Department has estimated that insurers must set
aside up to £7bn to cover liabilities