Hm Treasury
Detail of outcome
In January 2023, HM Treasury published the consultation document Introducing an Insurer Resolution Regime. The consultation document sought views on proposals to introduce a bespoke resolution regime for insurers, providing the Bank of England with new powers and tools to effectively manage the failure of a systemic insurer. The regime is intended to enhance UK financial stability, protect the wider economy, and minimise disruption to policyholders in the event of a systemic insurer failure.
This document summarises the responses received to the consultation and sets out the governments response to the issues raised.
The government intends to legislate for these proposals when Parliamentary time allows and will continue to engage with relevant parties.
Original consultation
Consultation description
These proposals provide the Bank of England with new powers and tools to effectively manage the failure of a major insurer, ensuring the UK is aligned with the relevant international standards. Use of these powers will be subject to statutory resolution objectives and conditions, and will aim to minimise disruption to policyholders and the wider economy in the event of insurer failure. The government judges that these proposals will promote policyholder protection, mitigate value destruction in the event of insurer failure and contribute to UK financial stability.
