Under which legislation does the regulator have powers to supervise insurers?

The correct answer pertains to the Financial Services Act 2012, which establishes a framework for the regulation of financial services in the United Kingdom, including insurance companies. This legislation grants regulatory authorities, such as the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), comprehensive powers to supervise insurers. The act aims to ensure the stability of financial markets, protect consumers, and promote competition among financial service providers.

Under the Financial Services Act 2012, regulators can set rules, monitor compliance, and take enforcement actions if necessary. This helps to ensure that insurers operate in a sound manner, manage risks effectively, and maintain adequate financial resources to meet their obligations to policyholders.

The other options do not provide adequate legal authority or structured oversight in the context of insurance regulation. An agreement with the Association of British Insurers and voluntary consent from market participants do not confer regulatory powers. They might establish guidelines or best practices but lack the enforceability of statutory legislation. The Data Protection Act 2018 primarily focuses on the protection of personal data, which, while relevant in terms of privacy for customers, does not relate directly to the supervision of insurers.