This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+180914
Categories:Politics

Hoban: Insurance regulation will not take back seat

  • Print
  • Comments (7)

Treasury financial secretary Mark Hoban has pledged that the regulation of insurers will not play second fiddle to that of banks in the new regulatory set up.

With the abolition of the Financial Services Authority in 2013, micro-prudential supervision of insurers and banks will be the role of the Prudential Regulation Authority. The PRA was only given a specific insurance objective “to provide an appropriate degree of protection for those who are or may become policy holders”  after lobbying from the Association of British Insurers.

In a speech to the Insurance Institute in London today, Hoban said the Government recognises the differences between insurers and banks.

He said: “Insurance regulation will not take a back seat to deposit-taker regulation.”

In November, the ABI called for the PRA’s proposed protection of future policyholders to be scrapped saying it would be a more appropriate objective for the future market regulator, the Financial Conduct Authority.

Hoban also welcomed developments in risk modelling technology which enable better risk pricing and customer differentiation, but warned it could end up pricing some out of the market.

He said: “It could cause more segmentation in the market, reduce the tolerance for risk sharing, and potentially cause a shift with some consumers being priced out of the market altogether, leaving them completely uninsured.”

  • Print
  • Comments (7)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Readers' comments (7)

  • Happy New Year Mark Holborn. Now please clear off and stop annoying us.

    Unsuitable or offensive? Report this comment

  • What a relief! Our Government knows the difference between banks and insurance companies. Do they however know the difference between stupid statements and informed opinions? I think not.

    Unsuitable or offensive? Report this comment

  • The FSA's Poodle will need to find a new owner after 2013?

    Unsuitable or offensive? Report this comment

  • More proof that somewhere a village is missing its idiot

    Unsuitable or offensive? Report this comment

  • Yes Minister.

    I've just read again the words of this person. Is he really on this planet? and if he is, could he talk in English as I can't make head or tail of it.

    Unsuitable or offensive? Report this comment

  • Hot air, waffle and bluster. Whoever writes this garbage for him?

    Unsuitable or offensive? Report this comment

  • A Lakey | 10 Jan 2012 3:36 pm

    More proof that somewhere a village is missing its idiot.

    Thanks Alan you really cheered me up with that one liner, bril!

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Do you see the auto-enrolment market as an opportunity for your business?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments