Scottish Widows has announced its support for a series of reform packages for the regulation of insurance companies in the UK under Solvency II.
The reform packages intend to introduce a "simpler, clearer, and much more tailored regime" and cut the required risk margin significantly, with a 65% cut for long-term life insurance business.
It also aims to increase investment flexibility by overhauling eligibility rules for the matching adjustments.
In a meeting held by the provider today (1 December), Craig Thornton, chief investment officer at Scottish Widows, will discuss with the city minister, Andrew Griffith MP, what the changes and opportunities of the reforms will mean as well as the impact it will have on the business and customers.
Thornton said that by working together the insurance industry, Government and the Prudential Regulation Authority will now be able to "unlock a significant investment boost for the UK economy, while continuing to help people secure their financial futures."
"Scottish Widows has already invested around £3bn in social housing projects across the UK, however we will be able to invest billions more in projects which are vital to the growth of the economy and the transition to net zero," he commented.
"We're looking forward to moving on to the next stage of the reform process at pace, which includes working with Government to accelerate the vital work of identifying suitable investment opportunities in the UK which will benefit from the recently announced changes."
