This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

ABI criticises PRA power to protect future policyholders

  • Print
  • Comment

The Association of British Insurers has criticised the Government’s decision for the Prudential Regulation Authority to protect future policyholders in its insurance objective.

The Financial Services Bill, published last week, gives the PRA the general objective of promoting the safety and soundness of firms and an insurance objective of contributing to securing an appropriate degree of protection for those who are or may become policyholders.

The insurance objective was only included after heavy lobbying from the ABI over concerns that the PRA would be too focused on banking regulation.

An ABI spokeswoman says: “They could be policyholders in two days or two years and so looking at capital and solvency, it is difficult to see how you protect policyholders who do not exist. How do you know what risk they pose? We would prefer it was not in there.

“Looking after people who may become policyholders makes sense on the conduct of business side but not on the prudential side.”

  • Print
  • Comment

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

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


Do you see the value in adviser trade bodies?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments