Insurance companies have massive capital reserves, way over that required of them by legislation.
And remember, they are not banks, they take money in, they don't lend out. The insure their potential liabilities with re-insurers.
I would see no reason to spread your pension over a number of providers for this reason. Maybe for investment choice but not because you think one of them will go to the wall.
Steven
www.bluewaterfp.ie
.Insurance companies have massive capital reserves, way over that required of them by legislation.
And remember, they are not banks, they take money in, they don't lend out. The insure their potential liabilities with re-insurers.
I would see no reason to spread your pension over a number of providers for this reason. Maybe for investment choice but not because you think one of them will go to the wall.
Steven
www.bluewaterfp.ie
Hello,
Are the insurance companies covered by any central "insurance fund" similar to the "comfort" offered to depositors by those bank's paying into the scheme with the Central Bank for example ?
I must admit, I don't take full comfort from these companies having massive capital reserves - Equitable Life comes to mind I'm afraid.
.
If we have learned anything over the past decade it should be that nothing is certain when it comes to financial matters, regardless of reserves or legislation. Very few people, if any, know and understand the true financial position of insurance companies.
So such blanket assurances are not advisable.
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