UK seeks tougher insurance rules despite possible EU challenge

Britain intends to implement a tougher version of EU rules on capital adequacy for its own insurers, even at the risk of a legal challenge, a top regulator has said.

Andrew Bailey, chief executive of Britain's Prudential Regulation Authority (PRA), said EU rules known as Solvency II, due to come into effect in 2016 at the earliest, would not be comprehensive enough.