Clifford Chance

Insurance, Asset Management and Funds

29 May 2024

Investments by Insurers under Solvency II and Solvency UK

Solvency II came into force in January 2016, representing a significant change to insurance regulation in the EU. Under Solvency II, insurers had to treat investments differently and adopt additional reporting requirements. Following the UK's departure from the EU on 31 December 2020, the UK plans to reform Solvency II with the regime to be known as 'Solvency UK'. The EU is also amending Solvency II, with both the UK and EU introducing changes to encourage investment by insurers in 'green' assets and infrastructure. Although the UK and EU are expected to implement reforms soon, the core Solvency II requirements are expected to remain similar. This briefing outlines the key current Solvency II requirements relevant to insurers as investors and outlines where any divergence is planned.

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