The introduction of Solvency UK will enable £100bn to be invested in a greater range of productive assets over the next ten years. The group from across the insurance and long-term savings sector will work with government, local and devolved authorities and investment organisations to drive and track the funding into projects focusing on green infrastructure and housing.
Established by the Association of British Insurers (ABI), the Investment Delivery Forum will build a detailed understanding of future projects that could be suitable for long-term investment. It will work with partners across local government and beyond to identify projects that need investment, to develop a shared understanding of the requirements of insurers and long-term savings providers when acting as investors and to explore how financing can be structured to allow greater opportunities for the sector and the customers it serves. Over time, the £100bn commitment as a result of Solvency UK reform will be tracked to underline the powerful role the industry plays as institutional investors, alongside its contribution to supporting energy security and the transition to Net Zero.
The Forum will look to work with many partners, including regulators, local government and those leading infrastructure projects to ensure that the investments can be made in a timely manner.
Baroness Nicky Morgan, ABI Chair, will chair the Investment Delivery Forum which will include CEOs from seven firms across the ABI’s membership.
Baroness Nicky Morgan, ABI and Investment Delivery Forum Chair, said: “The UK’s insurance and long-term savings industry has reached an important crossroad as an institutional investor. Taking the new path that Solvency UK will open up will require increased collaboration between industry, government, regulators and infrastructure projects. The ABI Investment Delivery Forum will facilitate that work to deliver the best returns possible for customers, for the economy and for the environment.”
Three delivery groups, each chaired at c-suite level, will drive the work in more detail alongside a range of experts including a team from Deloitte. Clare Bousfield, CEO Retail and Savings, M&G, will lead work on energy networks. Craig Thornton, General Insurance, Protection and Investments Director, Lloyds Banking Group, will lead a group looking at housing, and Mike Eakins, Chief Investment Officer, Phoenix Group, will focus on sources of energy generation. Deloitte will also provide project management and delivery support to the Forum.
The Forum will be supported by a group of independent experts who will be consulted for external insight and perspectives. The expert group includes:
Lord O’Neill of Gatley, former Chief Economist to Goldman Sachs and Commercial Secretary to the Treasury between 2015-2016
Lord Grimstone of Boscobel, former Chairman of Standard Life Aberdeen and of Barclays Bank, and Minister for Investment between 2020-2022.
Catherine McGuinness, CBE, Non-Executive Director Connected Places Catapult
John Flint, CEO UK Infrastructure Bank
Hannah Gurga, ABI Director General said: “Boosting investment in green and good projects across the UK is needed more than ever, and the insurance and long-term savings sector is uniquely placed to help meet this challenge. We need to build on the momentum that the implementation of Solvency UK will bring and ensure our investment is being directed to the projects that will best meet everyone’s needs, whilst continuing to ensure high standards of policyholder protection remain in place.”
The Chancellor of the Exchequer, Jeremy Hunt said: “Solvency II has the potential to unlock £100 billion of investment over the next 10 years to help grow the economy.
“This new forum is incredibly welcome and sets us on the right track to grasp this opportunity with both hands.”
John Flint, CEO, UK Infrastructure Bank said: “Unlocking additional investment in sustainable infrastructure is central to the Bank’s role. As an advisor to the ABI Investment Delivery Forum, I will help harness the potential of Solvency UK to drive investment in UK infrastructure from the insurance and long-term savings sector - supporting the UK’s transition to net zero and driving growth in the UK economy.”
Tulip Siddiq, Shadow City Minister said: "We welcome this important initiative from the insurance industry. A Labour Government will work hand-in-hand with the sector to deliver reform of Solvency II and drive investment in green infrastructure.
"Labour's missions to make Britain a clean energy superpower by 2030 and secure the highest sustained growth in the G7 are why we're committed to unlocking the full potential of the insurance sector to create good jobs in industries ranging from wind to hydrogen.
"In partnership with business, Labour will deliver Solvency II reform and our Green Prosperity Plan to cut bills, boost wages and provide energy security for Britain."
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