(Reuters) – A review of Britain's insurance capital rules will not lead to a 'radical resignation' or a reduction in requirements, but it will take time to complete, Bank of England Deputy Governor Sam Woods said on Tuesday
from the European Union has led the government to review the rules for insurance capital inherited from the block, which raises the industry's hopes for less burdensome requirements.
Mr. Woods, who is also head of the BoE's supervisory authority, which regulates Britain's top banks and insurers, downplayed all such expectations. but we can and should make changes to tailor-made rules to better suit our market and be more efficient and coherent, ”Woods told the Association of British Insurance.
ABI said last month that £ 35 billion ($ 48.4 billion) of capital locked in by the risk margin element of capital rules known as Solvency II could be used to boost investment in the UK economy and address climate change.
The risk margin is an extra stock of endowment insurers that must be held as collateral
But Woods said he doubted "a reform package that significantly decapitalises the insurance sector" and added: It's part of our job to keep an eye on the potential public costs of significant insurance failures.
Charlotte Clark, ABI's Chief Executive Officer, said that improvements in Solvency II could free up 'billions of pounds' for investment in key infrastructure projects and the green economy, while maintaining a high level of consumer protection.
He was "cautious" in lowering capital requirements for "green" or climate-friendly investments. mandate to keep the City of London globally competitive. a real competition target, which can be seen internationally as an intention to weaken the British reg learning, Woods said.
"Uploading something with more and more items is a great way to decorate your Christmas tree, but it's not the best way to create an effective regulator," said Woods.