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ABI comments on EIOPA consultation on corporate infrastructure

  • Insurers can play a key role to help to improve infrastructure, and are the UK’s largest institutional investors, managing assets worth £1.8 trillion.
  • They are natural investors in infrastructure as they hold long term liabilities, so it is important the prudential regime does not disincentive insurers from investing in infrastructure projects.
  • The ABI welcomed the new infrastructure asset class and its improved calibration charge in the Solvency II Delegated Act which came into force on 2nd April, something which we have been calling for.
  • The ABI has engaged in the EIOPA consultation to look at further improvements to include corporate infrastructure in the definition of infrastructure investment under Solvency II.

Commenting on the EIOPA consultation, ABI Senior Policy Adviser for Prudential Regulation, Alisa Dolgova said:

Alisa Dolgova"The ABI broadly supports EIOPA’s approach to identifying corporate infrastructure as part of the infrastructure asset class in Solvency II and the proposed calibrations are a step in the right direction."

"However, we are concerned that a distinction remains in how infrastructure project finance and infrastructure corporates are treated, which would create additional complexity and impact incentives on the operational structure of investments, even where the associated risks for insurers are the same. Capital charges should be based on the risk profile which underlies assets, rather than the operating structure. Therefore, we continue to support the extension of the capital treatment for infrastructure projects to all qualifying infrastructure with an appropriate risk profile."

Read the ABI’s full response to the EIOPA consultation (pdf 378kB) .

Last updated 01/07/2016