UK insurance is intended to assist with risk management rather than the other way around. A discordant note is struck by new UK regulations on UK insurance that seek to free up 95 billion pounds in funds to invest in environmentally beneficial endeavors such as wind farms.
After all, it wasn’t that long ago that authorities in the United Kingdom demanded that insurers retain their profits.
Rishi Sunak, the Minister of Finance, now wants to raise the size threshold at which insurers must apply the so-called Solvency II system from 5 million euros in gross premiums to 10 million euros in gross premiums, up from the current level of 5 million euros.
Despite the fact that governments are eager about assisting new entrants into markets, doing so comes with risks.
Because growing energy prices forced them out of the market, the introduction of a similar new entry push in the UK energy business resulted in the admission of inappropriate upstarts into the market, who eventually went bankrupt as the consequence of the rising costs of energy.
If the Bank of England takes an unreasonable length of time to approve insurers’ investments in sectors such as infrastructure and renewable energy, it may come under scrutiny.
Making the transition from being extremely cautious to being overly enthusiastic does not reflect well on the person.
Edited by – Vanshika Sahu
Published by – Mohd Faizan
