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Treasury urges clarity on Solvency II
A Treasury Committee report on EU insurance regulation has urged the insurance industry and the PRA "to come to an understanding on what aspects of Solvency II can be changed unilaterally while the UK remains an EU member state".
The committee argue that the UK “may have erred on the side of caution” when putting the regulations in practice. They are particularly critical of the PRA, saying: “An excessively strict interpretation of the requirements of Solvency II, and of its own obligations, has limited [the PRA’s] thinking in a way which could be detrimental to UK plc.”
The Treasury also urged the PRA to give equal weight to its secondary objective which is to ‘facilitate effective competition’.