Treasury launches post-Brexit shake-up of insurance rules in bid to unlock billions of pounds of investment
The Treasury has launched a shake-up of the rules governing insurance firms to unlock billions of pounds of investment.
Economic Secretary John Glen said the review of the EU’s ‘Solvency II’ regulations would let insurers invest policyholders’ money more freely, including in green energy and infrastructure.
Boris Johnson has said such a move could unleash an ‘investment big bang’.
Shake-up: Economic Secretary John Glen (pictured) said the review of the EU’s ‘Solvency II’ regulations would allow insurers to invest their policyholders’ money more freely
And Glen said: ‘Our reforms will unlock tens of billions of pounds of investment in the UK economy, spur innovation in the market while protecting policyholders, and will cement the UK’s position as a global hub for financial services.’
Solvency II rules dictate how much spare capital insurers must hold to cover losses if investments turn sour. Many in the industry say they are too cumbersome.
The Prudential Regulation Authority has said suggested changes ‘would involve an increase in the risk of insurer failure compared to the current position’.