Up until now, regulators in the City of London (COL) have expressed concerns regarding the reformation of the Solvency II rules, commenting that policy holders must remain protected against the likelihood of their chosen insurance provider going out of business. However, reform could be on its way.
Recent reports have indicated that UK ministers are now closing in on an agreement with COL regulators to launch what Prime Minister Boris Johnson has referred to as an “investment big bang”, as the UK government continues its attempts to prove that regulatory amendments in the wake of Brexit can provide a much-needed boost for the British economy.
The Bank of England is currently due to release details regarding the reform of Solvency II later in 2022, and it has declined to make any comment on the situation, but many aspects of the current legislation are being decried by its officials.
The Bank of England’s Andrew Bailey has hinted of an overhaul in a recent speech, suggesting that there was a clear case for reform that would allow insurers to offer greater support and investment without jeopardising the money of policyholders.
Both Prime Minister Johnson and the Chancellor of the Exchequer Rishi Sunak desire an overhaul of the rules regarding Solvency II, which were initially adopted when Britain was part of the European Union. The initiative was adopted to enable insurance companies to put billions of pounds’ worth of investment into both green energy projects and infrastructure.
UK consumers seeking investment advice in Chester, London and other cities can find expert guidance on infrastructure and sustainable energy assets from local wealth managers.
