Savings have been hit by falling markets

The company claims the move is in the long-term interest of policyholders - and not a reflection of its financial position.

But some commentators have said it shows how far the once mighty insurer has fallen from grace.

Standard Life's with-profits customers have seen bonuses slashed and exit penalties imposed during recent times.

'Greater freedom'

Many experts believe that more pain is to follow for customers.

You don't go to the regulator for a waiver unless you have to Ned Cazalet, insurance analyst

The company insists it is in good financial health and could even cope with a fall in the FTSE 100 index of more than 40%, from its current level of 3721 to 2100.

"We are very comfortable with our solvency levels at the moment.

"But anything that increases our investment freedom, to help bring in the sort of returns our policyholders are looking for, has to be a good thing," said a spokesman.

Independent insurance analyst Ned Cazalet was more sceptical.

"You don't go to the regulator for a waiver unless you have to," he told Reuters news agency.

He added: "Once one insurer gets a waiver, they'll all want one."

Still waiting

The UK's financial watchdog, the Financial Services Authority, said in January that insurers would no longer have to meet a benchmark known as the Required Minimum Margin (RMM).

This had specified the value of their investments had to be 4% greater than their liabilities.

The move was also designed to prevent insurers from dumping large volumes of shares to maintain regulatory levels of solvency, which had made heavy stock market falls worse.

Standard Life, which is Europe's largest mutual insurer, said it had yet to make a formal application for a waiver to the FSA.

A spokesman said it was still waiting for more details from the watchdog about what was involved.

More cuts

Two major UK insurers are expected to announce cuts in bonus payments to policyholders later this week.

Just one of three insurers expected to cut bonus payments

Prudential is expected to kick off this round of cuts to with-profits bonuses on Tuesday, with a 10% cut to be added to the 17% of cuts already made in the last six months.

Legal & General are likely to follow suit on Thursday, with each pointing to the other as evidence of an industry-wide problem.

Both will stress the cuts have been made for tactical reasons, rather than because any of them is in danger.

Standard Life has said it will make an announcement on bonuses in early May.

Future applications?

Legal & General said it had not sought an FSA waiver, although it declined to comment on whether it might seek one in the future.

Prudential said it was comfortable with its solvency position, but declined further comment.

Elsewhere in the sector, Abbey National bank said its two life insurance units had not applied for a waiver.

Scottish Widows said it had not applied for a waiver, but a spokeswoman added: "It is not possible to say whether we will or not in the future."