Regulation & ComplianceBoE strives to calm insurance jitters

BoE strives to calm insurance jitters

With the Solvency II regime set to roll out across Europe, the Bank of England (BoE) is seeking to reassure the UK’s major insurance companies over the impact this will have on their business.

With the Solvency II regime set to roll out across Europe, the Bank of England (BoE) is seeking to reassure the UK’s major insurance companies over the impact this will have on their business.

From the beginning of next year, new regulations with subject insurance firms to tougher capital requirements with a views to promoting “a better understanding of the risks being taken,” according to the BoE.

The Bank has dismissed accusations that it is trying to dictate business models.

“I have said this before but I think it is worth reiterating,” said Paul Fisher of the BoE’s Prudential Regulation Authority (PRA). “The PRA believes the UK industry is in a good position, having had the UK risk-based individual capital adequacy standards [ICAS] regime for around 10 years. We are therefore not looking to use Solvency II as an opportunity to raise capital requirements across the board.

“We do, however, recognise and respect that Solvency II is a maximum-harmonising Directive with a key objective of promoting supervisory co-operation. The PRA is committed to upholding this valued objective and will implement the Directive as intended. We can’t and won’t gold plate.”

The Solvency II regulations, which will affect major insurers such as Aviva, Prudential and Legal & General, were first proposed by the European Commission in 2007 in an attempt to standardise regulations across the industry. The onset of the financial crisis created delays, as extra measures were tabled to help prevent against a future crash.

 

 

Related Articles

Which transaction monitoring software is right for my institution?

Regulation & Compliance Which transaction monitoring software is right for my institution?

6d Elaine Dorkham
Bringing cryptocurrency to the front line  

Payments Bringing cryptocurrency to the front line  

3m Karen Vickers
China’s regulatory changes stimulate international interest

Asia Pacific China’s regulatory changes stimulate international interest

4m Michael McCaw
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

4m Victoria Beckett
AccessPay offers free tool to help corporates utilise PSD2

Payments AccessPay offers free tool to help corporates utilise PSD2

5m GTNews
Many treasurers juggle increased GDPR burden with business restructuring

More News Many treasurers juggle increased GDPR burden with business restructuring

5m Victoria Beckett
The arrival of PSD2: views from the market

Banking The arrival of PSD2: views from the market

5m Victoria Beckett
PSD2: dull name, but seismic effect

Clearing & Settlement PSD2: dull name, but seismic effect

5m Alex Kwiatkowski