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Solvency II

Journalist: Madeleine Knight, Property Week

ended 22. November 2022

Solvency II meant insurers had to hold a certain amount of capital according to EU regulation but now after Brexit the gov can decide and have lowered the threshold. This means insurers have billions to invest and historically property and infrastructure have been key targets. I’m looking to seek clarity/further info on this from someone in the investment space who can also predict how investment might go.

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Despite the government signalling it wanted to change Solvency 2 rules back in February, the volatility in Gilt markets will make them think twice. When there are changes to capital adequacy requirements, funds are built up by the stairs but go out through the elevator. If they relax the amount needed to be kept by insurers this will be returned to shareholders, not invested in other assets. The shambles over an agreement that have been made between the EU and UK will mean they eventually change course and go for a Swiss style agreement to protect trade with our nearest and biggest trading partner. This will spell the end to Solvency 2 changes.