Insurers have expressed concern about the state of the UK annuities market ahead of the introduction of periodic payment settlements for personal injury claims. The ABI held a seminar for members in January to discuss the annuities market, which is suffering from a lack of capacity.
The discussions come ahead of the introduction of the Courts Act, to be enacted before November this year, which will give courts the right to impose periodic payment settlements in serious personal injury cases. Such settlements, which see claims paid in inflation-adjusted instalments, can be funded through either insurers' reserves or the purchase of annuities.
Structured settlements are well established in the US and sources said the ABI had spoken with US annuities providers about entering the UK market.