The Prime Minister said his successor should get rid of Solvency II during an exclusive interview with the Daily Express. Solvency II lays down the regulatory requirements for insurance firms in the EU.
In force since 2016, Solvency II covers financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.
The Government says reform of the rules will boost the insurance industry, cut red tape and unlock investment.
Mr Johnson reflected on what the future holds for Brexit Britain in one of his last interviews as Prime Minister.
He told the Daily Express: “I’m massively confident, and I think Express readers, who have been with me and with us in this sort of long march through from 2016 onwards, saw the need to get on and get Brexit done.
Chancellor of the Exchequer, Nadhim Zahawi, left out a proposal which would have allowed the Treasury to “call in” or override a regulator, saying he wanted more time to consider the arguments.
The FT said Ms Truss would “definitely” press ahead with inserting the call-in power into the Bill, now making its way through parliament. The legislation is due for final approval in 2023.
Insurers have said the Bank of England is being too conservative and holding back capital which could be used to invest in infrastructure.
The Bank warns there is “no free lunch”, insisting policyholders must be protected.
Bank of England Governor Andrew Bailey has warned independent regulators are central to Britain’s standing as an international financial centre.
The new financial services bill already includes a new objective for regulators to maintain UK finance’s international competitiveness, which some MPs worry will mark a return to the kind of “light touch” regulation seen before the financial crisis.
The EU is also reforming insurance capital rules.
Ms Truss vowed earlier this month to reform Solvency II and The Markets in Financial Instruments Directive (MiFid) regulations.
MiFid is a regulation aimed at increasing transparency across the EU’s financial markets. It standardises the regulatory disclosures required of firms operating in the bloc.
Leadership rival and then Chancellor Rishi Sunak said in June Britain wanted to reform Solvency II rules quickly.