Johnson and Sunak to give joint speech on post-Brexit insurance reforms
Boris Johnson and Rishi Sunak are preparing to give a joint speech on planned post-Brexit reforms to the EU’s Solvency II insurance regulations.
The speech will be concentrated around the UK’s opportunities post-Brexit and will come after the government’s plan to scrap a series of EU regulations on the City was announced in the Queen’s Speech.
The Sun reports that the pair will do the speech in June in an attempt to reset Johnson’s faltering government.
A government taskforce last year estimated the retained EU Solvency II law – which makes insurance firms hold a certain amount of capital to ensure they can survive potential economic shocks – is holding back £95bn of investment into the British economy.
City minister John Glen earlier this year said the government would slash Solvency II’s risk margin, which will ensure firms need to hold less capital in reserve.
He said there would be a cut of between 60 to 70 per cent for life insurance firms, while the regulation will also be relaxed to allow firms to invest in long-term assets like infrastructure.
Government figures have also said that easing Solvency II, and freeing up billions of pounds for investment, will help complete the government’s agenda to “level up” the Midlands and the North.
Johnson and Sunak’s speech will likely also include mentions to other planned changes to the City’s rulebook in a bid to ensure the financial services sector maintain its global competitiveness post-Brexit.