Huw Evans, Director General, ABI said,
“We welcome the Government’s review of Solvency II. As we leave the EU transition period we need a regulatory system that enhances UK international competitiveness and allows insurance and long-term savings companies to invest for the long-term to help tackle climate change and rebuild the UK economy post-Covid. The long-term liabilities of insurance and long-term savings companies make them natural investors for the long-term but the current Solvency II framework discourages investment in sustainable assets and is overburdened with reporting requirements. This review is an important opportunity to make sure that the UK’s future regulatory regime works for the UK economy and does not place unnecessary constraints on the ability of firms to invest. In particular, a more flexible approach to Solvency II is critical in order to unlock more of the £250 billion assets that back UK annuities and could be used for investment in infrastructure and sustainable technology.”