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Suggestion of disregarding EU regulation is pie in the sky

Responding to comments in today’s Telegraph newspaper by Lord Flight, Hugh Savill, Director of Regulation at the Association of British Insurers, said:

Hugh Savill"The suggestion that UK insurers could do business without taking account of European regulation is pie in the sky. This suggestion would mean that British insurers who wish to operate in Europe, the largest insurance market in the world, would have to run two solvency regimes, two capital requirements, two different sets of bureaucratic regulation.  This would also make it harder for markets to make comparisons between UK and other European insurers – and could potentially lead to UK insurers being undervalued and less attractive to do business with.

"If the UK was to seek equivalence status with the European regime, it would mean having to establish our own parallel system; this would have to be very similar to the European regime but we would have no chance of influencing that European regime.

"Solvency II is far from perfect, but it is based on a thoroughly British approach to prudential regulation. This is why the UK did not oppose it, but engaged constructively in its negotiation."

Last updated 01/07/2016