The Bank of England’s Independent Evaluation Office (IEO) has published its evaluation of the PRA’s approach to its insurance objective. The PRA’s insurance objective is to contribute to the securing of an appropriate degree of protection for policyholders.
While the IEO did not find any evidence to suggest that the PRA is not meeting its policyholder protection responsibilities, the overarching theme of the report is that there is more to do to articulate the PRA’s approach to its insurance objective.
The IEO’s recommendations to the PRA fall into the following four categories:
1. articulating the PRA’s approach to its policyholder protection responsibilities fully;
2. communicating this approach clearly;
3. implementing the approach effectively; and
4. enhancing the PRA’s framework for co-ordination with the FCA.
The newly-formed Prudential Regulation Committee will take the IEO’s recommendations forward.