Rishi Sunak, the chancellor, will hold talks on Monday with senior insurance executives as the government tries to map a path for reforms that it claims will unlock vast sums for investment in British infrastructure.
Sky News has learnt that bosses from Aviva, Legal & General, Lloyd’s of London and the Association of British Insurers will be among those attending the meeting with Mr Sunak and John Glen, the economic secretary to the Treasury, on Monday afternoon.
The meeting comes amid impatience on both sides for an overhaul of the EU-wide regulatory framework which governs the insurance sector.
Industry sources said they had been briefed to expect that Mr Sunak would reiterate the government’s objectives for implementing swift reform of the rulebook.
Solvency-II has been identified by Mr Sunak and Boris Johnson as being one of the principal candidates for delivering a post-Brexit “dividend” to the UK’s increasingly embattled economy.
Under plans outlined by Mr Glen at the launch of a consultation process in April, ministers want to reduce the risk margin for long-term life insurers, while reducing the administrative burden facing the industry.
Crucially, it would also hand insurance companies greater investment flexibility, enabling them to deploy capital in long-term assets such as infrastructure.
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“Our reforms will unlock tens of billions of pounds of investment in the UK economy, spur innovation in the market while protecting policyholders – and will cement the UK’s position as a global hub for financial services,” Mr Glen said in April.
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A source said that policyholder protection and the financial soundness of insurers remained absolute priorities under the proposed overhaul.
Despite the government’s stated ambitions, insurance executives have expressed “bemusement” that those objectives have been encountering resistance from prudential regulators.
The Treasury declined to comment ahead of Monday’s talks with industry chiefs.
