Following the release of the Prudential Regulation Authority’s response to the Treasury Select Committee’s inquiry on Solvency II, Hugh Savill, Director of Regulation at the Association of British Insurers, says:
"While it is encouraging that the PRA remain committed to addressing the Risk Margin, after over two years of words, the time has now come for action.
"The refinements to Solvency II that the PRA refer to in their report are small steps in the right direction, however they are unfortunately not new and fall short of the fundamental changes that the Treasury Select Committee has recommended.
"The announcement of a Practitioners Panel sub-group for insurance is welcome. But we need more than just another exchange of ideas. We need decisive policy action now and over the mid-term to ensure the UK can continue to be a global leader in insurance and to help the British economy grow."