British lawmakers wish the Bank of England to “urgently alter the risk margin in EU insurance capital rules known as Solvency II. This refers to a capital add-on to cover what a third party would need to safeguard policies if an insurer goes bust. “In our view the calculation in Solvency II is wrong,”
Bank of England Deputy Governor Sam Woods told parliament’s Treasury Select Committee. The risk margin means that £50 billion ($68.81 billion) worth of insurance liabilities are tied up, he said.
