The Association of British Insurers (ABI) have welcomed the UK Government’s confirmation that it will reform Solvency II to enable the insurance sector to meet its ambitions and maximise its contribution to climate change investment.
Commenting on the announcement, Charlotte Clark, Director of Regulation, ABI, said: “Solvency II reform will be key in increasing UK competitiveness, driving investment in the green economy and supporting economic growth across the UK.
“We are pleased that the Government recognises our proposals for reform of the Risk Margin, for the Matching Adjustment to be less burdensome, and for reduced reporting requirements.
“This will make it much easier for our world leading insurance and long-term savings sector to invest in long-term assets, and make more effective use of capital.
“We look forward to working with the Government and the Prudential Regulation Authority on the detail of these reforms.
“It is vital that the reforms are not delayed so that our sector can do more to stimulate the economy, support growth and the transition to a green economy.”
Re/insurance broker Willis Towers Watson announced back in February that the government should make a number of key changes to ensure relevance for the UK insurance sector.
In April, UK law firm Sidley Austin warned that post-Brexit, it’s vital for the UK to obtain reinsurance equivalence under the Solvency II regime to avoid losing significant business in the European Union.
