Solvency II in the UK: Evolution Rather than Revolution

  • David Humphry
Chapter

Abstract

Around the turn of the twenty-first century, the UK Life Insurance and General Insurance sectors had been beset by reputational and solvency problems. In response, the Financial Services Authority (FSA) made fundamental changes to the prudential regulation of insurers. It enhanced existing requirements and introduced an entirely risk-based Pillar 2 capital regime—Individual Capital Adequacy Standards (ICAS)—in many ways anticipating changes introduced later by Solvency II. This chapter documents the UK’s journey from those difficult beginnings through to Solvency II, drawing out how the prudential regime changed, and the challenges along the way.

Keywords

Solvency I Solvency II 

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • David Humphry
    • 1
  1. 1.Insurance Policy DepartmentBank of EnglandLondonUK

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