Relief may be approaching on the regulatory side. A reviewed Solvency II framework, with formal application expected from 30 January 2027, simplifies the Long-Term Equity Investment framework, under which eligible investments can benefit from a significantly reduced capital requirement of 22%. Aberdeen Investments has described the revised framework as a potential turning point, arguing that LTEI reforms could “materially reshape insurers’ approach to equity allocation, capital efficiency and investment in the real economy.”
