‘Relying on regulation in isolation in BPA sector not enough’ - Gerken

Written by Adam Cadle

27/05/2022

Relying on regulation, in isolation, in the bulk purchase annuity (BPA) sector to ensure security of policyholder benefits is not enough, Bank of England, executive director, insurance, Charlotte Gerken has said.

Speaking at the 19th Annual Conference on Bulk Annuities, Gerken said “boards must be responsible for running their businesses prudently, consistent with safety and soundness”.

In addition she said “firms need to invest in the right risk expertise to take on and manage the assets selected to back their long-term obligations to policyholders; and resilience must be appropriate for the risks being run”.

“We, as a regulator, are keen to work with firms to create the conditions necessary for success now, and for the long-term. A successful outcome of the Solvency II review will be DB scheme members, trustees and insurance policyholders having long-term confidence in the resilience of the insurance sector, and in the security of their benefits.”

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