Insurance chiefs back new Solvency II investment forum to help deliver £100bn in investment


The heads of the UK’s major insurance firms have written in support of a new Investment Delivery Forum to help drive investment following the reforms to Solvency II.

Established by the Association of British Insurers (ABI) earlier in July, the forum is designed to tackle the investment gap preventing investment from the insurance and long-term savings sector into infrastructure projects.

Signed by the bosses of Phoenix Group, Royal London, Just Group, Scottish Widows and the UK head of Aviva, the letter highlighted the insurance industry’s commitment to invest the £100bn released through Solvency II reforms in projects that “deliver jobs, drive growth and protect our environment”.

t was also signed by the chief executive of Rothesay and head of retail and savings at M&G.

The letter said the forum will “bring together the investor community with industry leaders to deliver these vital projects.”

“By matching funding to need, this initiative will benefit Britain for future generations,” the letter said.

“We want to help tackle the housing crisis, support regeneration across the UK and fund the changes needed to meet net zero targets, whilst ultimately making the best investment decisions to support savers through a long and happy retirement,” the letter continued.

The Investment Delivery Forum will work with partners in local government to ensure funds released through Solvency II reforms make their way to the most valuable projects.

Baroness Nicky Morgan will chair the forum with the support of Lord O’Neill, former chief economist to Goldman Sachs, and Lord Grimstone, former chair of Standard Life Aberdeen and Barclays Bank.

Post-Brexit reforms to the EU’s Solvency II regime have been promoted as one of the most prominent Brexit dividends, driving investment into UK infrastructure.

The regulations determined how much capital insurers are required to hold on their balance sheet. In proposals announced by the Prudential Regulation Authority (PRA) earlier this month, the industry got its first glimpse of what changes .

The PRA said it would move towards a more principles-based system for assessing firms’ internal models, removing the more onerous requirements that insurers must meet, while raising the threshold at which firms enter the framework.

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