Bank of England says shake-up of insurance rules increases risks
The Bank of England has warned that a much-heralded overhaul to insurance rules “increases risk” and could result in a corporate failure that ultimately hits the public purse.
Andrew Bailey, the central bank’s governor, and Sam Woods, head of its Prudential Regulation Authority, said proposed relaxations to insurance regulations increased the risk that a pension provider runs out of capital to back their promises, citing past scandals such as Equitable Life.
Woods said the overall reform package “increases risk”, and that was a “trade-off” made by the government.
This story originally appeared on: Financial Times - Author:Ian Smith
