Changing risks and the search for yield on Solvency II capital Speech given by David Rule, Executive Director of Insurance Supervision  Association of British Insurers, London 6 July 2017  1  All speeches are available online at www.bankofengland.co.uk/speeches  Regulatory change has dominated our insurance supervision agenda for the past few years. Today I want to talk mainly about risks. Our supervisory work is similarly shifting gear. As Solvency II becomes business as usual, we will spend more of our time understanding the risks that insurers are taking and, where necessary, responding to them. I do though want to make a couple of initial points about Solvency II. First, we are making good progress, working with the ABI, in identifying improvements to our implementation of it. This follows up the commitment made by Sam Woods to the Treasury Select Committee in February. Amongst the areas we are working on are our processes around model changes and the matching adjustment; and regulatory reporting. We are working within the bounds of the EU legislation and I do not anticipate any headlinegrabbing initiatives. But I am confident that we will identify a number of practical changes that will make a difference to insurers and supervisors on the ground. Second, we will continue to update our approach in the light of new information. For example, it does appear 1  that the rate of improvement in life expectancy of older people has slowed in the United Kingdom .
At this Summit, MAS issued a consolidated set of guidelines to provide greater clarity and certainty on how our banking regulations apply to Islamic banking. Islamic finance was also featured when the Paris EUROPLACE International Financial Forum was held in Singapore in October. We will continue to work with fellow regulators and the private sector to fine-tune our regulatory approach and to develop the infrastructure and talent to facilitate the growth of Islamic Finance in Singapore. 17. As I mentioned earlier, bringing leaders in finance and business together to understand the developments in each region provides a valuable platform for collaboration. I am therefore pleased that MEGA Events has decided to bring the first Annual WIBC Asian Summit (Asia WIBC 2010) to Singapore. Islamic finance will provide an increasingly important bridge in the growing connectivity between the Middle East and Asia. Singapore is pleased to help catalyse deeper relations between these two high-growth regions. Asia WIBC will provide a unique platform for industry players from more established centres of Islamic finance to share their experiences. I look forward to welcoming all of you to the inaugural Asia WIBC in Singapore next June. Conclusion 18. In conclusion, the global economy is recovering gradually, though there remain many risks ahead. Emerging economies are expected to grow well, but we need to tackle the many structural challenges. Governments need to undertake structural reforms. The financial sector needs to facilitate the flow of funds into growth areas, and Islamic Finance will play an important role.