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UK regulator to shoot for ‘quick win’ reforms

Solvency II EU.jpg

The UK regulator intends to make a “quick win” reform of capital rules for insurers after the Brexit transition period ends, according to a senior Bank of England official quoted by Reuters this week.

Bank of England regulators will look to “rejig” Solvency II regulations in the UK as quickly as it can, Victoria Saporta, executive director of prudential policy at the BoE, told the Reuters Events Future of Insurance Europe conference.

The central bank has a long list of items for potential reform, she added.

“If we see that there are certain quick wins, and there could well be some quick wins in regulatory reporting for instance, then we might be able to deliver them,” Saporta is reported as saying.

Areas of focus include risk margins, regulatory reporting and rules around Libor, Saporta said, adding that regulators would need to work with the Treasury and Parliament, meaning some changes will take longer due to the need for changes in the law.

The EU is also reviewing Solvency II and Dimitris Zafeiris, head of financial stability at the European Insurance and Occupational Pensions Authority (EIOPA), said at the conference that reform would be “evolution rather than revolution.”

“Overall, the insurance solvency framework works,” Zafeiris said, according to Reuters’ report.