Executive Director of Insurance Supervision at the Bank of England, David Rule, spoke at the Association of British Insurers to reflect on the Bank of England's approach to the implementation of Solvency II and their experience of operating the framework in the first year of its life; and identified the areas where it can be improved.
Although some of the most important parts of Solvency II were born out of UK experience and designed with the needs of the UK industry in mind, he concedes it was too long in the making and expensive to implement for both regulators and industry.
He does however believe it is now working well despite a few notable exceptions, with the PRA's robust but proportionate implementation consistent with the Bank's statutory objectives.
The full speech can be read here: bit.ly/2kH6SW8