(Reuters) – The Bank of England told insurers on Wednesday not to expect a major reduction in capital requirements after Brexit, adding that more capital could be "part of the answer" to meet a £ 1.7 billion bill ( $ 2.35 billion) for COVID-19 claims.
The UK examines the "Solvency II" rules for companies such as Aviva, RSA and Lloyd & # 39 ;s of London insurance market that it inherited from the European Union among calls from insurers and legislators for changes to keep the sector competitive.
"We are determined to uphold the principles of Solvency II – they are our principles, and given the amount that companies are investing in the implementation of the Solvency II regime, we have no appetite to tear them up and start over," Anna Sweeney, BoE's CEO for insurance, spoke at a Westminster Business Forum conference.
The Association of British Insurance (ABI) told the conference that the sector is facing a £ 1
"We do not jump to conclusions that the industry needs lots of more capital, but the issue has highlighted the range of contract security out there and there must clearly be a better understanding of what it looks like," said Sweeney.
Capital can be a "part of that answer" but not before the BoE has engaged with the industry in a "more thoughtful" discussion, Sweeney said. "can help insurers broaden portfolios into long-term investments such as green technology and infrastructure.
" There are billions of pounds of insurance company assets that can be traced back to the critical challenges we face, "Dalton said.
Improvements were needed for onerous reporting requirements and slow regulatory decisions that drove new market players to Gibraltar and Bermuda, Mr. Dalton
Legislator David Hunt, co-chair of the Allies' parliamentary group on insurance and financial services, said Britain outside the EU must be clear about its ambitions.
"I believe the sky is the limit," Mr. Hunt said.
More insurance and risk management news on the coronavirus crisis here.