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UK's Cameron backs insurers on EU capital rules

May 11 2012 Myles Neligan

LONDON, May 11 (Reuters) - British Prime Minister David Cameron on Friday said his government would fight to make sure Europe's proposed Solvency II capital rules for the insurance industry did not put insurers in Britain at a disadvantage. "I do understand the dangers in Europe of Solvency II if we don't get that right," he said at an event in the Lloyd's of London insurance market. "We will listen to that and make sure the regulation is right." Solvency II, due to come into force in 2014, aims to make insurers in the European Union hold capital reserves in strict proportion to the risks they underwrite. The British insurance industry has complained about the cost of complying with the new regime, with life insurers expressing particular concern over the capital charge it could impose on long-term products such as annuities. Cameron was speaking as Lloyd's outlined a strategy to become the world's leading insurance hub by 2025 by cashing in on growing demand for insurance

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