The UK insurance industry has asked the government to push back a plan to scrap a widely used measure of inflation, because it expects pensioners, insurance policyholders and other savers to take a £122bn hit if the change goes ahead as planned.

The Association of British Insurers argues that switching to the proposed new measure of inflation would reduce the value of index-linked gilts by 17%, which is equivalent to £122bn, if it takes place on the proposed date of 2025.