Government publishes outcome of the consultation on the Solvency II Review

EU Regulation

On 17th November 2022, the HM Treasury published the outcome of the Solvency II review consultation, setting out the final reforms package.

The changes include:

• a significant reduction in the risk margin

• maintaining the existing methodology of the fundamental spread

• increasing flexibility around eligibility of assets for the matching adjustment portfolio

• reducing reporting and administrative burden

Download and read our outline of the key features of the final reforms package and the implications for insurers below.