PRA will not operate 'zero-failure' regime for insurers

clock

An incoming regulatory body responsible for insurance companies will allow firms to collapse under a new approach.

A document outlining the remit and objectives of the Prudential Regulation Authority (PRA) revealed it will not seek to operate a "zero-failure" regime in its approach to insurers. The PRA, alongside the Financial Conduct Authority, is set to replace the outgoing Financial Services Authority next year. Failing insurers will be allowed to go bust with the PRA seeking "to ensure that any insurers that fail do so in a way that avoids significant adverse effects on policyholders". The PRA also said it would categorise Britain's 1,000 insurers according to how big an impact their failur...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA proposes to cut down on data reporting for firms

FCA proposes to cut down on data reporting for firms

Part of regulator’s programme to ‘reduce burden’

Isabel Baxter
clock 16 April 2025 • 2 min read
FCA pumps £3.7m into advice/guidance boundary review work

FCA pumps £3.7m into advice/guidance boundary review work

Come as the regulator proposes to increase fees by 2.5%

Isabel Baxter
clock 08 April 2025 • 3 min read
Open letter slamming FCA email policy sent to regulator and government

Open letter slamming FCA email policy sent to regulator and government

'Alarming lack of consultation'

Beth Brearley
clock 20 March 2025 • 2 min read