Government’s position on Solvency II aims to spur innovation and competitiveness in insurance sector

Trevor Jones, Head of Insurance at KPMG UK, comments:

“The Government’s reforms on Solvency II are a strong step in the right direction for the insurance sector. The changes strike a sensible balance to enable additional investment and improve internal competitiveness, while ensuring the regulator has sufficient powers to scrutinise decision-making and the protection of policyholders.

“KPMG analysis has suggested that UK insurers could unlock up to £35 billion of surplus capital from the reform of the Solvency II Risk Margin, and we are pleased to see major changes to this element of the rules today.

“Improvements to the Solvency II Matching Adjustment can help deliver greater investment for the future, as long as they go hand-in-hand with the right processes and oversight.”

-Ends-

For further information please contact:

KPMG Media Relations

Helen Jackson

Tel: +44 (0)118 3731 479 / +44 (0)7901115649
helen.jackson@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.