Solvency II Review: Consultation

Solvency II is the regime that governs the prudential regulation of insurance firms in the UK. This consultation is an important stage of the Review of Solvency II. The review is underpinned by three objectives:

• to spur a vibrant, innovative, and internationally competitive insurance sector
• to protect policyholders and ensure the safety and soundness of firms
• to support insurance firms to provide long-term capital to support growth, including investment in infrastructure, venture capital and growth equity, and other long-term productive assets, as well as investment consistent with the government’s climate change objectives.

This consultation provides more detail on the reforms announced by the Economic Secretary to the Treasury on 21 February. It seeks views on the outcomes of the reforms. The evidence provided will inform the design of the final reform package.