Solvency II overhaul must put public interest first

28 April 2022

The Institute and Faculty of Actuaries (IFoA) welcomes the Government’s long-anticipated consultation on ‘Solvency UK’, which represents a major opportunity to overhaul Solvency II to ensure it aligns with a post-Brexit world.

We support HMT’s underpinning objectives for Solvency UK, including a prudential regulatory regime which:

• fosters innovation and international competitiveness;
• provides appropriate policyholder protection / soundness of firms;
• facilitates long-term infrastructure and ‘green’ investment;
• increases access to new insurers, widening consumer choice.

IFoA president Louise Pryor said:

“Any redesign of Solvency II to ensure ‘Solvency UK’ is fit for today’s current and emerging challenges needs to be a careful balance of the four factors set out by the government. The IFoA believes this mix is essential to deliver what is in the wider public interest, given the great potential of insurance investment in both levelling up and creating a more sustainable, green economy. However, this innovation needs to be balanced with consumer and policyholder protection.

“I believe the actuarial profession can and will have a critical role to play in striking an appropriate balance here. For example, the profession has been taking a leading and active role in providing professional expertise and insight in navigating the road to Net Zero.”

~ENDS~

Contact
Sonia Sequeira, Media Relations Manager, IFoA
Tel: 07525 592 198
Email: sonia.sequeira@actuaries.org.uk

About the Institute and Faculty of Actuaries

The Institute and Faculty of Actuaries (IFoA) is a royal chartered, not-for-profit, professional body.

Research undertaken by the IFoA is not commercial. As a learned society, research helps us to fulfil our royal charter requirements to further actuarial science and serve the public interest.
Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.

Members of the IFoA have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s of London.

Members are governed by the Institute and Faculty of Actuaries. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of actuaries in society.

The IFoA is available to provide independent expert comment to the media on a range of actuarial-related issues, including COVID-19 and its long term consequences, mortality, pensions, life and general insurance, health and care, finance and investment, climate change and sustainability, systems thinking, uncertainty and judgement, and risk management.