This chapter considers the new regulatory regime for the insurance sector in the UK, which is expected to come into force in 2013. It provides an overview of: the old regime, including its characteristics and alleged failures; an overview of the reform proposals, including the splitting of the functions of the FSA between the FCA and the PRA; the regulatory objectives of the reform, including the supervisory approach of the PRA and the interventionist approach of the FCA; detailed aspects of the reforms; the new emphasis on the wholesale markets; and the crucial importance of behavioural and cultural change for the reforms to have their effect.

This article is part of the PLC multi-jurisdictional guide to insurance and reinsurance. For a full list of contents visit www.practicallaw.com/insurance-mjg.