Are insolvency arrangement changes coming for Insurance Companies?

Published: 08/07/2021 By Jane Price

The government are in consultation to discuss targeted changes to current insolvency arrangements in place for insurers.  

The changes would enable the UK authorities to better manage insurer distress in an orderly manner.  

The proposed amendments include:
  • Clarifications and enhancements to the court’s existing power.   
  • New provisions to help mitigate business disruption and losses for insurers in distress. 
  • Changes to the protection provided by the Financial Services Compensation Scheme (FSCS)
These amendments aim to promote continuity of cover for policyholders by allowing earlier intervention by the regulatory authorities when an insurer was suffering financial distress, reduce costs to industry, and help maintain public confidence in the UK’s insurance sector.

The consultation closes 11:45pm on the 13th August 2021

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