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Why Solvency II reforms might not release billions after all

Loosening capital buffers increases risks, while new investment might just be hoarded

Solvency II is not the 'EU red tape’ the government has portrayed it as: it is a way of managing risks to the British public and UK economy
Solvency II is not the 'EU red tape’ the government has portrayed it as: it is a way of managing risks to the British public and UK economy Photo: Getty Images

Jesse Griffiths is chief executive of the Finance Innovation Lab

The government’s claim that reforming Solvency II regulations that govern the multi-trillion pound insurance industry will “unlock tens of billions of pounds of investment” is not only misleading; it also hides how risky the reforms are.

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