Or at least one of them. It seems that the Treasury and the insurance industry are thinking hard about that part of the regulatory framework called Solvency II, a framework built for Europe as a whole. Or perhaps it should be Solvency 11. A framework which, inter alia, worries about how much cash or near cash an insurer must hold; cash which serves as a buffer when the claims are coming in thick and fast. With the amount of cash being, I think, determined as some fraction or multiple of the amount of business being done.
The call for evidence at reference 1 runs to more than thirty pages, and a quick glance suggests that it is not for the faint hearted amateur. No doubt the evidence will be even longer and even less accessible. But no doubt also, the FT will keep us all posted on how all this is going. On how the brave new world of life on the edge of Europe is panning out in practise.
PS: according to the FT, the people at reference 2 are about to publish a five point plan which bears on all this. But a quick search there reveals no such plan at all. I expect that I am missing something.
Reference 1: Review of Solvency II: call for evidence - H M Treasury - 2020.
Reference 2: https://lmg.london/.
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