UK insurance coverage reforms pose dangers to policyholders, BoE’s Bailey says

LONDON, Jan 16 (Reuters) – The British authorities’s proposed modifications to insurance coverage sector capital guidelines current a danger to policyholders however to not the broader monetary system, the top of the Financial institution of England mentioned on Monday.

The finance ministry overrode the BoE and proposed looser guidelines for insurers which it mentioned will assist the sector to spend money on infrastructure and increase financial development.

“I do not assume that it is seemingly, all issues equal, that it is a danger to monetary stability, however it’s a danger to policyholders,” BoE Governor Andrew Bailey instructed parliament’s Treasury Choose Committee.

Bailey mentioned the BoE had not agreed to just accept the federal government’s proposals on insurance coverage capital guidelines in return for the federal government withdrawing plans to offer itself powers to veto selections by monetary regulators.

Bailey mentioned he wouldn’t think about that type of “commerce”.

Reporting by David Milliken, Huw Jones and Suban Abdullah;
Modifying by William Schomberg

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