Early-warning indicators needed to address failings in Solvency II - PRA chief
The introduction of capital early-warning indicators is necessary to make up for the failings in Solvency II, according to Prudential Regulation Authority (PRA) chief executive Andrew Bailey.
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 reliance on modelled
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