UK proposes 8% hike on regulatory fees for insurers in 2022/23 season

The UK's market regulatory body  PRA hopes to increase the fees its takes from insurers and other supervised financial institutions by 8% for its 2022/23 year, according to a proposal released for consultation.

The PRA postulates its total funding requirement at £320.9 million, an increase of 8.2% or £24.3 million from the 2021/22 take.

The sum includes a 3% or £9.8 million increase in the core budget for ongoing regulatory activities to £297.5 million plus a new £15.1 million line as the PRA picks up a portion of the larger set of priorities at its parent institution, the Bank of England (BofE), including new policy responsibilities.

Foremost amongst those new strategic priorities, the PRA names “proactively preparing for emerging risks in the financial system and establishing a robust regulatory regime for a post-Brexit world” in addition to 100 new staff, data and tech investments plus a share of the increase in the BofE’s support services.

Of the £24.9 million annual increase in the annual funding requirement (ahead of select fees), the proposal would leave general insurers paying £44.7 million, up £3.6 million y/y. Life insurers would pay £54.4 million, a £4.3 million gain. Lloyd’s MGAs would pay £1.8 million, a £0.1 million increase. Lloyd's itself would pay £2.3 million, up £0.2 million from the 2021/22 season.

The PRA ended the 2021/22 year with a surplus of £7.2 million, split nearly evenly between a surplus on fee and fine collection plus the benefits of spending below target.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.