UK’s regulator warns on price discipline
Saturday, 07 01 2017, Category: Insurance and Reinsurance, Country: United Kingdom
The UK’s Prudential Regulation Authority unit of the Bank of England has sent yet another warning to insurance and reinsurance CEO’s on the need to remain disciplined on price, especially while prices continue to soften, and that the alternative market continues to pressure rates, particularly in property catastrophe risks.
The PRA’s Executive Director for Insurance, David Rule, wrote to the CEO’s of insurance and reinsurance companies on the findings of regulators latest questionnaire for London re/insurance market participants.
Of particular note are comments on pricing adequacy, discipline and a suggestion that there are growing concerns that some companies may be taking on more risk than they are really accounting for.