You are here

Brexit and Solvency II: The Story So Far

In the light of the June 2016 Brexit vote, the UK Treasury Select Committee (TSC) opened an inquiry into the operation of Solvency II (SII) in the UK. The inquiry wanted to understand the strengths and weaknesses of SII in its existing form, together with exploring the options open to the UK insurance industry following the Brexit vote. 

The inquiry was – and remains - a real opportunity for the IFoA to influence this debate. The IFoA submitted a comprehensive written response on 11 November; a copy of it can be found here: IFoA response. A number of Practice Boards were heavily involved in putting it together, including the Life and General Insurance Boards, as well as the Retrospective on Solvency II Working Party, amongst others. Our thanks go to all the Boards, Committees, Working Parties and individual members who contributed to this important debate. 

The TSC published a number of the written responses they received, and we have produced a summary of a selection of these responses. Note that the summary is based on our own interpretation of these written submissions: IFoA Summary

IFoA Oral Evidence

Following our written evidence, the TSC invited the IFoA to provide supplementary oral evidence. Andrew Chamberlain, Chair of the Life Board, gave evidence on behalf of the IFoA on 17 January 2017, together with representatives from PWC and KPMG. 

Themes explored by the TSC at this meeting included the suitability of SII for the UK market, whether the PRA should have competition as a primary objective, and the wider impact of measures such as the Matching and Volatility Adjustments and the Risk Margin.  Our evidence focussed on the impact of SII from a public interest perspective, including the balance between policyholder security and policyholder value for money. The meeting went well and the TSC were left with a clear idea of some of the impacts of SII and potential solutions to address them. A video of this session can be found here – IFoA/TSC video - and the corresponding IFoA/ TSC transcript. 

We followed-up on our appearance with a brief letter summarising some of the issues/ potential changes which could be made to SII in the UK: Summary of SII Changes.  

The TSC had a subsequent session with further respondents on 25 January 2017, and the corresponding video / transcript can be found here: 25 Jan video25 Jan transcript.

TSC Sessional Event

The week after our attendance at the TSC, we held the first ever dual-site live sessional event in the IFoA’s history. The event drew together IFoA working parties at Staple Inn and Edinburgh on 23 January, and featured a live video feed between both sites and on-site presentation and discussion. 

The sessional meeting started with a debrief from Andrew Chamberlain on our evidence to the TSC, including the wider context to the Committee.  There then followed updates from two Working Parties relevant to the themes of the TSC inquiry (Retrospective on Solvency II and Transitional Measure on Technical Provisions). The event closed with a Q&A session live from both sites.

The meeting was a success, and the IFoA hopes to replicate this dual-site model in the future. Our thanks go to Andrew Chamberlain, the two sessional Chairs and both Working Parties for presenting on the night. A video of the sessional meeting will be added to this site when available. 

Next Steps

The TSC is a particularly influential committee, and Government departments, notably HM Treasury, are likely to consider carefully what the TSC have to say. We will be monitoring developments with the TSC carefully, and hope to have further IFoA input on the ongoing evolution of insurance regulation in the UK.

We will update this page as the debate progress. 

Title Date
IFoA summary and analysis - TSC Solvency II Inquiry 31 January 2017
Insurance industry evidence to the Treasury Select Committee Solvency II Inquiry: 25 January 2017
Summary of Solvency II changes 17 January 2017
IFoA evidence to the Treasury Select Committee Solvency II Inquiry: 17 January 2017
IFoA response to TSC Solvency II Inquiry 11 November 2016

Contact Details

Policy Team

IFoA, 7th Floor, Holborn Gate, 326 – 330 High Holborn, WC1V 7PP

Filter or search events

Start date
E.g., 09/08/2020
End date
E.g., 09/08/2020

Events calendar

  • Mortality and Longevity Webinar Series 2020

    Webinar Series
    22 July 2020 - 10 August 2020

    Spaces available

    View the full schedule of webinars in this series via this link.

    This webinar series will provide topical and practical updates and discussion on the latest thinking and innovations in mortality and longevity, and is designed to be very accessible to a broad range of experience.


  • Spaces available

    Part of the Mortality and Longevity webinar seriesAs an industry, it has been important to be able to look to the future to identify the next quantifiable risk. In this session, I will explore some of the less tangible, but none-the-less concerning risks to future health, such as the health risks associated with exposure to pesticides, ingestion of plastic in the food chain, and the hazards of indoor air pollution through exposure to volatile organic compounds.

  • Spaces available

    A Trusted Profession

    This free 1 hour CPD webinar is designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2019/2020 and is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive.

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series

    Modelling the structure and trends of cancer morbidity risk is important for pricing and reserving in related health insurance fields such as critical illness insurance and care provision. We model the dynamics of cancer incidence over time in different regions in England, using 1981-2016 ONS data. The modelling allows estimation of cancer rates at various age, year, gender and region levels, following a Bayesian setting to account for statistical uncertainty. Our analysis indicates significant regional variation in cancer incidence rates. 

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series

    In this talk we will outline the steps Aviva took in pulling together our first large-scale disclosures on the exposure of our business to climate change published in March 2019; in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. After touching on why insurers have such an important role in climate change, we'll cover a brief “how-to” guide for those who have not yet embarked on thinking about these topics before giving a case study of how the learnings from a TCFD disclosure exercise can be applied to investment portfolios.

  • Spaces available

    Part of the Protection, Health and Care Conference 2020 webinar series

    The insurance industry currently underwrites customers with diabetes based on a range of factors, medical expertise and various medical studies. The work undertaken by the Diabetes Working Party would help the industry to approach this using current research findings to update and enhance how potential risk from diabetes is considered. This includes the need to understand the underwriting implications as treatments improve, and potentially to develop new products that are tailored to those with diabetes. This webinar will present our latest findings in the management of this important chronic condition which will include research in collaboration with the ARC. 

  • Fully booked.

    This event is now fully booked. To join the wait list, please register here.

    Get ready for the new CPD Scheme launching on 1 September. Join us for a discussion on what the new Scheme will look like in practice. There will be an opportunity to field questions to the IFoA Executive on how the Scheme’s requirements will affect you.

  • Asia Conference Webinar Series

    1 September 2020 - 24 September 2020

    Spaces available

    There will be a prestigious line-up of international speakers discussing the insurance and financial industry’s innovation and change in Asia.  The conference will take place throughout September via an online platform. The webinars consist of plenary speaking sessions and a series of workshop sessions including Life, GI, Data Science, Sustainability, Risk Management and Investment.

    This will be the perfect opportunity for you to discover,ask questions and be at the forefront of current and developing actuarial/financial topics and trends in Asia.


  • Spaces available

    In this webinar we will provide an insight into enterprise-wide risk management in banking, showing similarities to the world of insurance as well as identifying differences. Just as insurance companies have to submit an ORSA, so bank’s have to submit their own equivalent, the Internal Capital Adequacy Assessment Process or ICAAP.

  • Spaces available

    This free 90 minute webinar is designed to support the IFoA CPD Co-ordinators, and others, involved in supporting our members to achieve their CPD requirements. 

    The programme will include an overview of the new CPD Scheme; specifically sharing with you key messages to support you implement and embrace the new CPD Scheme for our members within your organisation and regional community; how to arrange a reflective practice discussion; and an interactive reflective practice discussion learning exercise.  In addition, delegates will gain information about accessing, and making the most of the IFoA event Toolkits which you can make use of to run your own in-house events and events for regional communities.