The directive – which is designed to increase the stability of the industry – was given the green light by the European Commission in March 2014.
Paul Fisher of the Bank’s Prudential Regulation Authority (PRA), said: “We are not looking to use Solvency II as an opportunity to raise capital requirements across the board,” it was reported in the Telegraph.
“I have said this before but I think it is worth reiterating. The PRA believes the UK industry is in a good position, having had the UK risk-based ICAS regime for around ten years,” Fisher said.
He added: “The PRA will implement the directive as intended. We can’t and won’t gold plate.”
Solvency II has been in the pipeline since 2007 and was delayed for two years in October 2013 to avoid legal uncertainties, particularly in light of extra measures implemented to protect the economy against another financial crisis.
The insurance industry has spent years preparing for Solvency II, which will be implemented in January 2016.
