It looks like more insurers will be following L&G’s lead and developing social housing projects across the UK, which can only be a good thing in the long term. Will other green infrastructure investments actually make a profit for the insurers however? Here is the latest from the ABI;
Senior industry leaders have come together to form a new Investment Delivery Forum which will act as a catalyst and facilitator for driving investment into UK infrastructure projects.
The introduction of Solvency UK will enable £100bn to be invested in a greater range of productive assets over the next ten years. The group from across the insurance and long-term savings sector will work with government, local and devolved authorities and investment organisations to drive and track the funding into projects focusing on green infrastructure and housing.
Established by the Association of British Insurers (ABI), the Investment Delivery Forum will build a detailed understanding of future projects that could be suitable for long-term investment. It will work with partners across local government and beyond to identify projects that need investment, to develop a shared understanding of the requirements of insurers and long-term savings providers when acting as investors and to explore how financing can be structured to allow greater opportunities for the sector and the customers it serves. Over time, the £100bn commitment as a result of Solvency UK reform will be tracked to underline the powerful role the industry plays as institutional investors, alongside its contribution to supporting energy security and the transition to Net Zero.
The Forum will look to work with many partners, including regulators, local government and those leading infrastructure projects to ensure that the investments can be made in a timely manner.
Baroness Nicky Morgan, ABI Chair, will chair the Investment Delivery Forum which will include CEOs from seven firms across the ABI’s membership.
The Chancellor of the Exchequer, Jeremy Hunt said: “Solvency II has the potential to unlock £100 billion of investment over the next 10 years to help grow the economy. This new forum is incredibly welcome and sets us on the right track to grasp this opportunity with both hands.”
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