Bank consults on Brexit change to capital calculation for insurers

By Neasa MacErlean

The insurance sector looks set to move to a calculation of its 'equity risk capital charge' that will be more closely linked to the investment policies of UK insurers than to European ones. The proposal - now being consulted on by the Bank of England and the Prudential Regulation Authority - is part of a package of measures being introduced to prepare the sector for 31 December when the United Kingdom fully and finally leaves the European Union.