The UK’s Treasury Pick Committee (TSC) opened a Solvency II Inquiry in September 2016. The Inquiry, which is part of the TSC’s broader get the job done on the UK’s post-#Brexit partnership with the EU, is taking into consideration (eg) the deserves of: “retaining the effect of Solvency II as at the day of Brexit, but not incorporating any subsequent amendments to [it]“ and “revert[ing] to the aged ICAS regime, [but including] the features of … Solvency II … which are viewed as desirable” (if any).
NaijaNGR hosted a (Re)insurance policies Market place Participants’ Discussion board to go over the Inquiry’s Phrases of Reference, just before submitting a summary of the dialogue and conclusions to the Inquiry as created evidence.
Discussion board individuals agreed that:
- United kingdom (re)insurers and their regulators invested a “staggering” amount of money of time and revenue making ready for Solvency II
- Policyholders, (re)insurers, regulators, and shareholders have witnessed some return on that financial commitment, but it cannot nonetheless be regarded as an expense well made
- If the Uk leaves the EU and the EEA, and it’s for that reason free to fluctuate or revoke its Solvency II implementing procedures, it “would not make any feeling” to do so. In fact, it would be “a shameful squander of income” and “utter madness” to try out
- Solvency II, or at minimum the UK’s approach to Solvency II, has been “disproportionate”. However, the reply is to “smooth off the tough edges” – not repeal and switch it
- The ongoing price tag of compliance with Solvency II, or the UK’s version of it, may possibly nicely be increased than the expense of compliance with the alternate options, but it’s a rate well worth spending if that will enable the Uk to retain the (re)insurance coverage passport or protected Solvency II equivalence
- Even if the passport can’t be retained, and equivalence isn’t out there, the expense of alter, and the risk and uncertainty linked with it, are unable to reasonably be regarded as a value worthy of paying out just for lessen compliance charges afterwards on.
Far more to follow…