LONDON, May 7 (Reuters) - Britain's insurers should be ready
to tap markets for capital if necessary due to uncertainty over
the volume of claims in the coronavirus pandemic, the Bank of
England's insurance regulator said on Thursday.
"What we are asking firms to do and expecting firms to do is
to think of different sources of vulnerabilities that might have
a financial cost, and their flexibility for action," BoE
executive director for insurance Anna Sweeney told a City &
Financial webinar.
Some firms could redeploy funds earmarked for growth to
provide capacity to absorb losses, with one insurer already
having gone to the market to raise capital, Sweeney said.
"We won't be surprised to see a range of responses," Sweeney
said.
"It would be not sensible for anyone to rule out the need
for cost-effective raising of capital, but we are not seeing a
burning platform as we speak," she added.
Lloyd's of London insurer Hiscox this week raised
375 million pounds ($460.88 million) in an equity placing.
($1 = 0.8137 pounds)
(Reporting by Huw Jones)