BoE PRA publishes plans to support resilience in the life insurance industry
- “Funded reinsurance is growing rapidly and has the potential to undermine the resilience of insurers if not managed properly. Today’s proposals aim to iron out the discrepancy in the regulatory treatment for these deals, to protect pensioners and improve insurers’ incentives to invest directly in the UK economy.”
- The proposals should reduce incentives for firms to choose funded reinsurance over other sources of capital, supporting future resilience and also driving more direct investment in its place, including investment in the UK economy.
Context
The BoE PRA's proposals to strengthen the resilience of the life insurance sector address concerns over growing funded reinsurance, aiming to prevent potential risks to insurers. By aligning regulatory treatments, the plans not only protect pensioners but are also expected to incentivize insurers to invest more directly in the UK economy, influencing both capital flow and overall financial stability.
Trade the TapeGet this analysis live, the moment it breaksNewsquawk's real-time dashboard delivers market-moving headlines and instant context to your desk before the rest of the market reacts.
Open Dashboard#UNITED KINGDOM#GBP#EUROPE#AVIVA PLC#AV.LN#BOE#FIXED INCOME#EU SESSION#CENTRAL BANK#MULTI-LINE INSURANCE#REINSURANCE#INSURANCE#INSURANCE (GROUP)