UK proposes new group supervisory system under Solvency II

The government and regulator have teamed up to argue that the current rules for supervision of insurance groups should be replaced as part of the Solvency II project.

A new paper by HM Treasury and the Financial Services Authority (FSA) is lobbying the European Commission to rework insurance group supervision under the opportunity afforded by Solvency II. As the Solvency II project steps up a gear in anticipation of a public consultation on a draft of the directive in February 2007, the UK lobby argues that a “fundamental review of how group supervision operates” should form a crucial part of new solvency rules.