Last checked at 
UK insurers fall sharply in heavy volume on news that Britain's financialwatchdog is planning to investigate whether people sold pensions and savingsplans in the past were treated fairly compared to new clients.
British life insurer Resolution falls 10 percent to a nine-monthlow, on course to post its biggest daily fall in five years, Aviva isdown 6.9 percent, Legal & General falls 4.9 percent and Prudential drops 1.7 percent.
That collective hit weighs on the STOXX Europe 600 Insurance Index,to leave it down 0.6 percent, the only sectoral faller across Europe.
It also comes in heavy volume, with Resolution and Aviva trading at nearly1-1/2 times their three-month daily average after just over an hour of trade. That compares to an average of less than 20 percent for the FTSE 100 asa whole.
"Should investors be allowed to exit policies and look for a better deal,the sector may be punished with large out-flows of money from some zombiefunds," Mike van Dulken, head of research at Accendo Markets, says.
UK insurers are already under pressure following a shakeup of the pensionssystem announced by finance minister George Osborne in his budget earlier thismonth.
The reforms, due to be implemented in April next year, effectively scrap asystem forcing most retirees to swap their pension savings for an annuity thatpays out an income for life, giving them instead a choice in how they invest.
Reuters messaging rm://atul.prakash.thomsonreuters.com@reuters.net
