Question to the HM Treasury:

To ask His Majesty's Government whether there is a state guarantee for life insurers' buy-in or buy-out policies.

The Prudential Regulation Authority carefully supervises insurers and requires them to maintain sufficient financial resources and robust risk-management arrangements. If a UK-regulated insurer fails, eligible annuity policies, as contracts of long-term insurance, are protected by the Financial Services Compensation Scheme at 100% with no upper limit.

The Government is also developing proposals for an Insurer Resolution Regime, following consultation in 2023. This would provide additional powers to manage the failure of a systemic insurer in an orderly way, helping to protect policyholders and financial stability.