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Solvency II has caused 'confusion and anger' says Conservative MP Andrew Tyrie

Andrew Tyrie has called European policymakers' attempts to regulate insurers "an object lesson in how not to make law".

The Conservative MP, who chairs the Treasury Select Committee, said the proposed Solvency II rules had caused confusion and anger throughout the sector. The capital rules were originally drawn up to protect consumers but have been delayed several times, leaving UK insurers nursing billions in compliance costs. "For the best part of 10 years, Solvency II has been mired in uncertainty, at great cost to the regulators, insurers and, ultimately, consumers," Mr Tyrie, pictured, said. "Strengthening and harmonising the prudential regulation of the insurance sector across the EU could bring significant benefits. But we haven't seen any yet. Even now, no one can be sure what it will add."

His views were published in a series of exchanges with Andrew Bailey, the head of the Prudential Regulation Authority, who described Solvency II as "lost in detail and vastly expensive".