Brexit dims hopes for Solvency II change in UK

Lawyers say political tensions may have killed off chance of reform, following PRA U-turn

Having already changed its policy once, the PRA returns to its original position and pours cold water on the reform

The Prudential Regulation Authority’s decision not to reform the Solvency II risk margin for insurers, because of Brexit negotiations, could mean the regulation will go unchanged on a permanent basis, according to legal experts.

“It’s certainly possible the risk margin in its current form could be here to stay. If the UK thought leaving it unchanged is a price worth paying, considering the benefits of a comprehensive [Brexit] deal, the PRA might accept that. I think it’s clear that Chancellor [