Melville is a keen advocate of Solvency II reform in the UK that includes easing the standard Solvency Capital Requirement for real estate:
Reform could free up insurers to help meet levelling-up ambitions
Institutional real estate investors’ entrepreneurial DNA has much to contribute with investments in productive capital throughout the cycle: a win-win with government that enhances policyholder protection by increasing investment into such capital and makes opportunities more equal across the UK.
The real estate industry must prioritise campaigning for this Solvency II reform.
Government, please listen, progress with the PRA and enable the industry to make this contribution – and deliver on the package of Solvency II reforms, that includes easing of the SCR for real estate, sooner than later.
John Glen MP, Economic Secretary to the Treasury, on 21 February 2022 helpfully signalled the prospects of ‘Solvency UK’ “making it easier for insurance firms to use long-term capital to unlock growth”…..”It’s time now to push ahead with this. The Government will publish a full consultation document in April, bringing forward detailed proposals, underpinned in turn by concrete supporting analysis.”
John Glen’s reply to Theresa Villiers MP in this House of Commons debate on 1 February 2022:
stated "We are making progress. We are in deep conversations with the Prudential Regulation Authority and its actuaries on the way that the risk margin and the matching adjustments should be altered to release that additional capital. We are confident that progress will be made and we are also working closely with the insurance industry to see that that comes to pass."