FIN.

Regulation of the insurance sector set to change

In a speech given at the Association of British Insurers, Sam Woods, CEO of the PRA, said that the regulation of the UK insurance sector is set to change.

Mr Woods stated that rules for insurers would be set out in the PRA’s rule book, rather than in law, because a regime largely contained in the PRA’s rulebook is easier to update when it seems that a rule is not working properly.

Mr Woods stressed that none of the changes would lower levels of policyholder protection, but regulation should be tailored to better fit the UK market.

Also covered was this year’s review of Solvency II, the regime introduced by the EU in 2016 to harmonise insurance regulation.

Hannah Frost