Is solvency II such a great idea still?

According to the Bank of England relaxing Solvency II will increase the risk of insurers defaulting. This is such a good move now, especially in light of the collapse of SVB?

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Relaxing Solvency II, which sets out the capital requirements for European insurers, could indeed increase the risk of insurers defaulting. The Bank of England’s concerns are not unfounded, particularly in light of the recent collapse of Solvency II-regulated insurer, SVB. However, it’s worth noting that Solvency II has also been criticised for being overly restrictive and limiting insurers’ ability to invest in growth opportunities. There may be a balance to be struck between maintaining the safety and stability of the insurance industry, and allowing insurers the flexibility to operate and invest in a changing business environment. Ultimately, any changes to Solvency II regulations should be carefully considered and implemented with caution, with the aim of protecting both policyholders and insurers.