Early-warning indicators needed to address failings in Solvency II - PRA chief
Effective and prudent solution needed on Solvency II matching adjustment, says Bailey
The introduction of capital early-warning indicators is necessary to make up for the failings in Solvency II, the UK's top insurance regulator has said.
Prudential Regulation Authority (PRA) chief executive Andrew Bailey said the regulator needed to act now to introduce "sensible backstops" for insurers in order to prevent capital models being used to push capital levels too low.
"Our use of early-warning indicators is precisely because we have learned the hard way with banks that excessive
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