Question to the HM Treasury:

To ask His Majesty's Government when they last reviewed contingency plans for buy-in and buy-out pension annuity products in the event of a life insurer having financial difficulties; and whether they plan to review this in the next year.

The Government keeps the framework for managing insurer distress and failure under review. The Prudential Regulation Authority (PRA) is responsible for the prudential regulation and supervision of insurers and has a range of powers to intervene where firms experience financial difficulties. Insurers are subject to robust prudential requirements and ongoing supervision designed to protect policyholders and promote the safety and soundness of firms.

In 2023, HM Treasury consulted on proposals for an Insurer Resolution Regime, which would provide the authorities with additional tools to manage the failure of a systemic insurer in an orderly manner. The Government is considering the implementation of these proposals and will continue to engage with stakeholders on the development of the regime.