BOE to Rule on Insurers’ Risk Models in December, Woods Says

The Bank of England will issue its verdict in December on the models insurance companies use to quantify risk and determine capital requirements as the industry prepares for the new European Union rules known as Solvency II.

“I consider it vital that our approval process is entirely consistent across firms, and that the timing and communication of our decisions is consistent with orderly markets,” Sam Woods, the BOE executive director for insurance supervision, said in a speech in London on Thursday.