The overall effect of U.K. solvency reforms due to be set out in November will be beneficial to U.K. insurers, according to a new report from AM Best
The Best's Special Report, "UK Insurance Regulator Targets Life Insurers in Upcoming Solvency Reforms," notes that in the longer term, product innovation might be enhanced by the new treatment of certain assets and liabilities that would not previously have qualified for the matching adjustment.
In September 2024, the United Kingdom's insurance market financial regulator, the Prudential Regulation Authority (PRA), released a statement setting out its intention to publish a final package of rules following a review of Solvency II. Scheduled for publication in November 2024, the impact of these reforms will fall primarily on the U.K.'s life insurance segment.
AM Best's commentary discusses the likely impact of the revised rules on insurers in the United Kingdom and looks at some revisions being considered by European Union authorities to the Solvency II framework.
The report's authors note: "While the reforms mark the beginnings of a divergence between the UK and the EU solvency regimes following the U.K.'s exit from the EU, nevertheless, the two regimes remain very close."
To access a complimentary copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=348336.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com
Copyright 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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