BoE proposes accountability framework
Regulation of the insurance sector in the UK is set to change in order to implement the Solvency II directive.
The Prudential Regulation Authority (PRA) is currently consulting on proposed changes to its rules, said the Bank of England on Wednesday.
The proposals include the introduction of a senior insurance managers regime where senior officials at insurance companies will “have clearly defined responsibilities and behave with integrity, honesty and skill.”
It added that the regime will reflect the particularities of insurers’ business models and the relevant legislation and will not be the same as the regime that was proposed for banks.
The consultation paper relates to all insurance and reinsurance firms, including third country branch undertakings, within the scope of Solvency II, and to the Society of Lloyd’s and managing agents.
