Autumn Statement 2022: Government sets out Solvency II reform package

Reforms cut risk margin and overhaul eligibility rules for matching adjustments

Jonathan Stapleton
clock • 5 min read

The government has set out its final reform package for the regulation of insurance companies in the UK following its consultation on the review of Solvency II.

In its consultation response, published by HM Treasury today (17 November), the government said it would introduce a "simpler, clearer, and much more tailored regime". In particular, it said it would cut the required risk margin significantly, with a 65% cut for long-term life insurance business. It said it would also increase investment flexibility by overhauling eligibility rules for the matching adjustments. And the government pledged to "slash red tape lingering from the EU", which it said imposes "unnecessary burdens on firms, restricting innovation in our vibrant market". ...

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