The UK’s Prudential Regulation Authority (PRA), a part of the Bank of England, has initiated a consultation process to reduce investment barriers for insurance companies.
The proposals, outlined in a new consultation paper, introduce the Matching Adjustment Investment Accelerator (MAIA), designed to streamline the Matching Adjustment (MA) application process and reduce barriers to swift investment decisions.
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Under the suggested reforms, insurers holding an MAIA permission would gain immediate recognition of the Matching Adjustment benefit before receiving full MA approval.
This would allow companies to act on time-sensitive investment opportunities without delay.
The proposals grant a 24-month window for companies to submit a formal MA application for eligible assets featuring new characteristics, mitigating the risk of missed opportunities.
PRA CEO and Prudential Regulation Deputy Governor Sam Woods said: “This innovation will enable insurers to make more rapid investment decisions and support growth in the UK economy, while protecting policyholders.”
The PRA’s initiative aligns with its secondary objective to promote the UK’s economic growth and international competitiveness.
The MAIA is pertinent to insurers that currently hold an MA permission and those that may apply for one in the future.
Through the PRA, the Bank of England is tasked with the prudential regulation and supervision of financial services companies including banks, building societies, credit unions, insurers and major investment firms.
Last month, the UK’s Financial Conduct Authority (FCA) launched a market study to assess the distribution of pure protection insurance products and ensure they align with consumer protection regulations and the FCA’s objectives.
