Royal London is concerned that insurers will be forced to draw up living wills along with banks after it emerged that the Financial Stability Board has drawn up a list of 30 international firms that could be most at risk in the event of a financial global meltdown.
Royal London head of corporate affairs Gareth Evans says it is unclear in the Financial Services Bill which institutions will need to make living wills, which could mean that it extends to insurers. The list is thought to include Royal Bank Scotland, Barclays and HSBC as well as insurers Axa, Aegon, Aviva, All-ianz, Zurich and Swiss Re.
Evans says: “The wording in the bill suggests it could apply to absolutely anyone, including insurers like ourselves. It says it is aimed at institutions that are systemically important but how will this be measured?”