Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Britain says insurer capital rule changes to start by end of 2023

by Staff GBAF Publications Ltd
0 comment

Britain says insurer capital rule changes to start by end of 2023

By Huw Jones

LONDON (Reuters) -Britain’s finance ministry said on Thursday that the first batch of post-Brexit reforms to ‘Solvency II’ capital rules for insurers, which it hopes will unlock billions of pounds to boost growth, will be implemented by the end of this year.

The original rules were introduced when Britain was part of the European Union, and reforming them to reap a “Brexit dividend” has become a test of how far the UK is willing to go to help the City of London remain globally competitive post-Brexit.

The government and Bank of England had clashed over how far to ease the rules, and industry has repeatedly called for the changes to be implemented speedily.

“The Government expects that reform of the risk margin will be in force in legislation by year end 2023,” the ministry said in a statement.

The risk margin refers to the potential cost for a failing insurer to transfer its policies to a third party to avoid disruption to customers.

Parliament is finalising a new financial services bill to amend rules inherited from the EU, giving the ministry and regulators powers to make changes.

To help speed up reform, on Thursday the ministry published draft measures to make the actual changes to Solvency II, once the new financial services bill is on the statute book.

“It is considering options to enable reforms to the matching adjustment to come into force by the end of June 2024, and the remainder of the new regime will come into force by year end 2024,” the ministry said.

“The reforms will boost economic growth by delivering a more tailored, clearer and simpler regulatory regime.”

(Reporting by Huw Jones; Editing by Toby Chopra and Christina Fincher)