The UK Government, in particular HM Treasury (HMT), and the Prudential Regulation Authority (PRA), have started to review the current application of Solvency II in the UK and to make amendments to the regulatory environment to tailor it to the UK insurance market. The review and subsequent amendments have arisen, and will continue to arise, from a number of different initiatives by HMT and the PRA, with further releases expected in the coming months and years. A limited number of aspects of the review or the possible amendments resulting from them have been entirely confirmed at the point of writing and there is still much uncertainty over what the future UK insurance regulatory landscape will look like.

This paper, drafted by Milliman consultants in the UK, aims to summarise the aspects of the review released to date with a focus on:

• HMT Review of Solvency II, including the Call for Evidence and the responses to it;
• The background to the PRA’s Quantitative Impact Study (QIS);
• The PRA’s Phase 1 consultation on the Review of Solvency II Reporting; and
• Overall considerations of the UK’s review of Solvency II.

The full PRA QIS exercise was published on 20 July 2021 and will be covered in detail in a subsequent paper by Milliman.