Under the proposals, insurers will have to allocate specific responsibility for developing and embedding the culture of their firms to one or more senior managers. The watchdog also plans to introduce new conduct standards for these managers.
“Policyholders are best served by insurance companies with senior managers who can be held to account and who are individually responsible for the decisions they make,” PRA chief executive and BoE Deputy Governor Andrew Bailey said.
Regulators have come under fire from lawmakers for bringing so few bankers to book Visit website after lenders had to be bailed out by taxpayers in wiki href=”http://benefitsautoinsurance.com”>Their website the 2007-09 financial crisis.
Under the so-called “reversal of burden of proof” proposals for banks, top managers would have to prove to regulators they were unaware of or had challenged dubious behaviour at the time.
This has alarmed bankers, with two directors of HSBC set to leave the bank because they are unhappy with the new rules, Reuters reported last month.
The plans Other for insurers are slightly different, recognising the differences between the industries, the PRA said.
Regulators would have to show misconduct by See page an insurance official was deliberate or that behaviour fell below reasonable standards. The sanctions that could be imposed against insurance officials are also in line with those already available, such as fines, bans and public warnings.
The Association of British Insurers (ABI), an industry body, said it was reassured the plans recognised the differences between banks and insurers.
“We will be working with our members… to ensure that the regime is fit for purpose and ensures a continuing More information flow cheap car insurance of high level talent into the insurance industry,” it said.
The new regime for insurers such as Site internet Prudential and Aviva will apply to chief executives, chief finance officers, chief risk officers, heads of internal audit and chief actuaries.