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By Huw Jones and Carolyn Cohn
LONDON, Feb 23 (Reuters) - A review of post-Brexit capital
requirement rules for insurers will seek proportionate reform
and will not be swayed by any "deregulatory agenda", Britain's
financial services minister said on Tuesday.
Britain inherited the Solvency II insurance capital rules
from the European Union, which it left on Dec. 31. But UK
insurers and lawmakers have long called for changes to make the
rules more tailored for the sector in Britain.
A consultation by the finance ministry on potential changes
has just ended, with the insurance industry hoping it will lead
to an easing in capital requirements.
"This isn't about a gratuitious deregulatory agenda, but
proportionate and appropriate changes to reflect the situation
happening in the UK," finance minister John Glen told the
Association of British Insurers' (ABI) annual meeting.
The Bank of England has also warned insurers not to expect
any big reduction in capital requirements after Brexit.
Jon Dye, chair of the ABI, said that insurers were not
looking for "huge capital reduction at the expense of
policyholder protection".
"There's plenty of scope for practical reform here that
utilises the UK's ability post-Brexit to have a regulatory
system designed for the UK market, not the aggregated needs of
28 countries."
Changes to the Solvency II regime could free up 95 billion
pounds ($133.82 billion), which insurers could use to invest in
areas such as tackling climate change, according to research by
consultants KPMG for the ABI.
($1 = 0.7099 pounds)
(Reporting by Huw Jones
Editing by David Goodman)
