GovWire

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.