Solvency II 'good for UK schemes' – Redington

The European Insurance & Occupational Pensions Authority (EIOPA) will publish its latest recommendations on the plan to extend the rules governing capitalisation in the insurance sector to pension schemes on February 15.

It completed a consultation on the subject earlier this year, prompting universal condemnation from the UK pensions industry, with predictions of the cost to schemes and sponsors running as high as £1trn.

But Redington claims the proposals would partially offset this cost with “significant additional assets” to schemes — for example more widespread use of sponsors’ contingent assets — while also citing non-monetary benefits such as improved governance and strengthened covenant.