Consultation on strengthening the administration regime for insurers

The Treasury have published a consultation document which seeks views on "Strengthening the administration regime for insurers...". See here. The report notes:

"This consultation seeks views on Government proposals to improve the protection and payment

of benefits for holders of insurance contracts with an insurer facing financial difficulties, in

particular addressing gaps in protection that remain in the administration regime for insurers in

comparison to the liquidation regime. The Government proposals include:

• applying the existing rules for valuing contracts of insurance in liquidation to

administration; and

• revising the objectives of an administrator of an insurance company, by:

o changing the law to require administrators to provide assistance to the FSCS to

enable it to administer the compensation scheme and secure continuity of

contracts of insurance; and

o applying existing powers relating to continuity of contracts of long-term

insurance on the liquidation of an insurer to administration."

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