The chancellor will meet with executives from companies such as Aviva and Lloyd’s of London in search of a post-Brexit economic dividend.
The chancellor, Rishi Sunak, will meet with senior insurance executives on Monday as the government attempts to chart a course for reforms that it claims will free up vast sums for investment in British infrastructure.
Executives from Aviva, Legal & General, Lloyd’s of London, and the Association of British Insurers will be present at the meeting on Monday afternoon with Mr. Sunak and John Glen, the economic secretary to the Treasury.
Both sides are eagerly awaiting a revision of the EU-wide regulatory framework that governs the insurance industry.
Industry sources have been briefed to anticipate that Mr. Sunak will reiterate the government’s goals for implementing rapid rulebook reform.
Mr. Sunak and Boris Johnson have identified Solvency-II as one of the leading candidates for delivering a post-Brexit “dividend” to the United Kingdom’s increasingly fragile economy.
Ministers want to reduce the risk margin for long-term life insurers while reducing the administrative burden facing the industry, according to plans outlined by Mr. Glen at the April launch of a consultation process.
It would also provide insurance companies with greater investment flexibility, allowing them to invest in long-term assets such as infrastructure.
In April, Mr. Glen stated, “Our reforms will unlock tens of billions of pounds of investment in the UK economy, stimulate market innovation while protecting policyholders, and cement the UK’s position as a global hub for financial services.
The protection of policyholders and the financial stability of insurers remained absolute priorities, according to a source, under the proposed overhaul.
Despite the government’s stated goals, insurance executives have expressed “bemusement” that prudential regulators are resisting these initiatives.
The Treasury refused to comment before Monday’s meeting with industry leaders.
