insurancepeople


Late News


Paper onPRA supervision of insurers


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he Bank of England and the FSA have published a joint paper “The Bank of England Prudential Regulatory Authority - our approach to insurance supervision”, setting out the anticipated PRA approach to supervision of insurers. The PRA will be responsible for the prudential supervision of


over 2,000 firms, of which around half will be insurers - life, general and wholesale (including reinsurance) — with the remainder deposit-takers and certain investment firms. Hector Sants, FSA chief executive and PRA chief executive designate, says, “Reflecting the uncertain nature


More questions than answers


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ommenting on the BoE/FSA paper on future regulation, Bruno Geiringer, a partner in the insurance group at Pinsent Masons, says: “Today’s paper from the FSA and the Bank of England still leaves open more questions than it provides answers. Insurers will welcome Hector Sants’s assurance that the PRA’s costs will not exceed the current cost of the FSA’s newly formed Prudential Business Unit, and that a new group in the PRA will focus on the regulation of mutual and friendly societies in recognition of the diversity in the ownership structure they offer.


“However, concerns still remain on the overlaps and underlaps in the supervision of insurers by the PRA and the FCA, given that the criticism of the past was a lack of a joined-up approach. Crucial will be the impact the PRA has in Europe as the regulation of insurance is so dominated by the impending implementation


of the EU Solvency II directive.”


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Another comment on the future of insurance regulation comes from Fiona Raistrick, director at BDO LLP, who says, in part:


“A central theme of the FSA’s views on the future of insurance regulation is that ‘insurers are different from banks’. It could be seen as reassuring that the FSA have made this clear distinction, to alleviate any fears the industry may have had that regulation and supervision of insurers was derived from that of banks. However, the PRA approach to regulation of insurers issued today doesn’t look overly different to that of the banking sector approach issued a few weeks ago. Rather like the ‘new approaches to banking supervision’, the ‘future’ framework for insurers contained little which is actually new.”


of insurers’ liabilities, prudential insurance regulation will be forward-looking and judgement- based. Much of the PRA’s proposed approach will be achieved in practice through the application of Solvency II.” Julian Adams, FSA director of insurance, adds, “The PRA will concentrate its resources and


actions on those insurance firms and issues that pose the greatest risk to its objectives. The risk assessment framework for insurers will explicitly take into account the need to protect policyholders, the various risks to which insurers are exposed, and the different way in which insurers can fail.”


GABRobins associate inPakistan


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AB Robins has announced the latest associate to join its international network, with the appointment of Ghafoor Associates (Pvt) Ltd in Pakistan. Ghafoor is reported to be one of Pakistan’s longest established


BE recently welcomed Harlequins and England


loss adjusters, providing a range of specialist adjusting, valuation and technical and engineering consultancy services. It becomes the most recent associate in GAB Robins’ 47-strong international network.


Rugby internationalatQBE Q


under-18 and under-21 rugby international Will Skinner, who completed a week-long placement within its marine, energy and aviation division. The placement was organised by QBE in conjunction with the Rugby Players’ Association’s player


development programme, which supports professional rugby players’ personal and professional development throughout and beyond their playing careers. He spent time with the onshore and offshore energy teams, marine liability and hull and cargo teams, as well as with a broker at Lloyd’s.


in association with


Pictured: Will Skinner (left) with Bob Knight, onshore energy underwriter from QBE's Marine, Energy and Aviation Division.


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