Winds of Change

Regulatory Reforms For Insurers Offer Opportunities

By Stuart JarvisEdwin Wilches – 15 December 2025

 

Key Takeaways

 
  • Overhaul enables greater investment diversification and reshapes asset mixes.
  • Right-sizes capital requirements that insurers must hold against certain assets. 
  • Insurers having flexibility across public and private fixed income have competitive advantage.

Regulatory changes across Europe and the UK are opening new opportunities for insurers. Updates to Solvency II and Solvency UK are reducing capital requirements and broadening the range of eligible assets, creating scope for greater diversification and improved returns.

These reforms aim to unlock long-term investment potential, from securitised assets to infrastructure debt, while supporting economic growth. Insurers can now access a wider spectrum of fixed income assets, and asset managers offering solutions aligned with these changes stand to gain a competitive advantage.

Understanding these developments is essential for insurers and investment professionals navigating a shifting regulatory environment. Our latest article explores the implications for portfolio construction, risk management and yield optimisation.