The plans follow those the Bank’s Prudential Regulation Authority (PRA) has already drawn up for senior Link bankers, although they are less demanding in some respects.
“Policyholders are best served by insurance companies with senior managers who can be held to account and who Main Visit the site page 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 after lenders had to be bailed out by taxpayers in 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 for insurers are slightly different, recognising the differences between the industries, the PRA said.
Regulators would have to show misconduct by an insurance official was deliberate or that behaviour fell below reasonable standards. The sanctions that could be imposed against insurance officials are also click here in line with those already available, such as fines, bans and public warnings.
“We will be working with our members… to ensure that the regime is fit for purpose and ensures a continuing flow of high level talent into the insurance insurance industry,” it said.
The new regime for insurers such as Prudential and Aviva will apply cheap car insurance to chief executives, chief finance officers, chief risk officers, heads payday loans of internal audit and chief actuaries.
At the Lloyd’s of London insurance market, it will apply to chief underwriting officers and underwriting risk oversight functions.