Ceiops backs grandfathering capital requirements for annuity business

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The Committee of European Insurance and Occupational Pensions Supervisors (Ceiops) has proposed allowing the use of an illiquidity premium for assessing capital levels for annuity providers’ existing business, in its latest round of Solvency II implementation advice, published in November. As Life & Pensions reported at the end of October, grandfathering is being considered as a potential solution to the impasse between Ceiops, which insists a risk-free rate should be applied to lon