The proposals would give the Bank of England wide-ranging powers to deal with acute failure scenarios, treating policyholder liabilities as loss-absorbing.

HM Treasury (HMT) is proposing1 a new UK resolution regime for insurers that would appoint the Bank of England (BoE) as resolution authority (RA) with sweeping powers to resolve insurers through transfer or bail-in, and to make resolution plans and assess resolvability in advance.