BoE governor looks to enable insurers to support infra investment

Written by Adam Cadle

11/02/2022

Bank of England governor Andrew Bailey has emphasised that Solvency II reforms could be used to enable more support from insurers for “productive finance and infrastructure investment”.

In a speech given at TheCityUK annual dinner, Bailey said “that way we can ensure a resilient approach to the prudential regulation of insurers and so stability in the supply of finance”.

“When we decide to revise inherited EU standards, we must ensure that they meet our public policy objectives. At the heart of the prudential regime for insurers in the UK are the objectives of safety and soundness and policyholder protection. How we put those objectives into practice should also encompass any macro-prudential measures that we consider appropriate.

“I do not for a moment consider that the Solvency II we transposed from EU law and regulation is best suited to the UK. Why would it be, since it was designed to cover 27 countries? The case for reform is clear.”

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