Our riskbased supervision of insurance firms is delivered in line with this regime, anchored by our PRISM3 methodology. It strives to deliver effectively in ensuring that the system as a whole is, and individual firms operating within it are, appropriately resilient.
It seeks to ensure that regulated firms: have sufficient financial resources (capital and liquidity), including under a plausible but severe stress; have sustainable business models to allow them to prosper through the economic cycle; are well run, appropriately governed, have effective risk management and control functions and appropriate cultures; and can recover if they get into difficulty, and we can resolve them without significant externalities or taxpayer support if they cannot.