LONDON, Nov 16 (Reuters) - The British government and the Bank of England are reforming insurers' capital rules, seen as a post-Brexit test of UK willingness to "unshackle" the City of London after leaving the European Union. The EU's Solvency II rules were introduced for insurers in 2016, after years of debate, when Britain was still an EU member. They are designed to ensure insurers hold enough capital to remain stable and can make payouts on policies. The Bank has already consulted on potential changes it says would release 45-90 billion pounds ($53.65-$107.30 billion) of investment capital. The second element involves easing reporting requirements, widening the range of assets insurers can invest in, and tweaks to how insurers' internal capital models are approved.

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