Commenting on the response from HM Treasury to its call for evidence on the review of Solvency II, Charlotte Clark, Director of Regulation, Association of British Insurers, said:
“We welcome the Government’s confirmation it will reform Solvency II as soon as possible so our sector can meet the Government’s ambitions and maximise our contribution to climate change investment. Solvency II reform will be key in increasing UK competitiveness, driving investment in the green economy and supporting economic growth across the UK. We are pleased that the Government recognises our proposals for reform of the Risk Margin, for the Matching Adjustment to be less burdensome, and for reduced reporting requirements. This will make it much easier for our world leading insurance and long-term savings sector to invest in long-term assets, and make more effective use of capital.
“We look forward to working with the Government and the Prudential Regulation Authority on the detail of these reforms. It is vital that the reforms are not delayed so that our sector can do more to stimulate the economy, support growth and the transition to a green economy.”
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