UK: insurance regulation and Solvency II concerns

In a speech delivered earlier this week, Paul Tucker, an executive director of the Bank of England, spoke about the regulation of the insurance industry and noted concerns with Solvency II (the new European capital adequacy regime for insurers): see here (pdf). In particular, he noted that Solvency II, like Basel II for banks, risked being too complicated in its introduction of a risk sensitive regime. See here and here for further information about the implementation of Solvency II in the UK.