BoE backs cut to insurers’ capital requirements
Post-Brexit move to ease regulations requires tightening of some other rules, central bank says
The Bank of England says it backs a UK government proposal to cut capital requirements for some insurers, so long as other regulatory measures are made tougher.
The BoE said that if the proposed reforms to Solvency II are implemented together, they could lower capital requirements for life insurers by 10–15%. Although the central bank noted this would increase the risk of firms failing, it said this was within its risk tolerance.
The BoE was commenting on a government consultation, launched
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