The UK Prime Minister and the head of the Association of British Insurers (ABI) have joined the debate about the proposed Solvency II rules.

Speaking in the UK Parliament, Prime Minister David Cameron expressed concern insurance giant Prudential is considering moving its headquarters to Hong Kong as a result of the new rules.

Mr Cameron told Parliament Solvency II is “a good example of ill thought-out European Union legislation”.

He also said the rules were “endangering a great British business (Prudential) that should have its headquarters in the UK”.

ABI Director-General Otto Thoresen was also concerned about Prudential’s threat to head offshore.

“European companies must not be put at a competitive disadvantage with local players in international markets,” he said in the British press.

Prudential CEO Tidjane Thiam has initiated a review of the new regulation’s impact on the insurer.

Prudential is already listed on the Hong Kong and Singapore exchanges and it generates 45% of its sales in Asia.