The Association of British Insurers on Sept. 30 signaledthat it will lobby for changes to the Solvency II rules following the Brexitvote, calling for a regulatory environment that is "appropriate" forthe U.K. market.
"As the largest sector in Europe, it is not feasible tobe in a position where we have no say on how we are regulated," Huw Evans,director general of ABI, said in a statement. "In particular, with thefuture development of Solvency II and the UK prudential regime up for debate wehave to ensure the [U.K. Prudential Regulation Authority] has the opportunityto play a full part in its ongoing implementation, especially on critical areassuch as the risk margin."
Evans told the FinancialTimes that there is room to improve the Solvency II regime in the U.K.,while noting that amendments could also be made to the reporting requirementsof the PRA. However, Evans reportedly said that a complete revamp of SolvencyII was not required.
The association also called for retaining passporting rightspost-Brexit, among other points that it raised with the government.
The U.K. Treasury Select Committee recently launched aninquiry into SolvencyII to explore the impact of the regulatory regime on British insurers and theoptions now available to the U.K. following its decision to leave the EU.