Aviva owners of Norwich Union and others have in response to FSA supervision of Assurers solvency margins in the wake of the credit crunch have declared even after allowing for a 40% drop in asset values they would still have a sizeable surplus, over and above, any required margin, and in addition they have effected suitable hedging strategies to protect against further falls.
In the wake of the Lehman Bros. collapse still unravelling, we pose the question how safe are the providers of options, and future contracts of all descriptions, and to what extent are these providers of derivatives monitored? It has been voiced does anyone really understand them, and only time will tell.