What body oversees the activities and ensures compliance of insurers in the UK?

The Prudential Regulation Authority (PRA) serves as the main regulatory body responsible for overseeing the activities of insurers in the UK. Its primary objective is to ensure the stability and integrity of the financial system. The PRA focuses on the prudential regulation of banks, insurers, and investment firms, emphasizing the need for these firms to maintain sufficient capital and risk management practices to protect policyholders and promote confidence in the insurance sector.

The PRA’s role includes setting standards and regulation that firms must follow, conducting regular assessments, and taking corrective actions if necessary. This oversight is crucial for maintaining a robust and reliable insurance market where consumers and businesses can trust that their insurers are financially stable and able to meet their obligations.

In contrast, the other options have different functions: The Treasury primarily handles economic and financial matters but does not directly regulate insurers. The Conduct Authority focuses on ensuring fair treatment of consumers and market conduct, rather than prudential oversight. The Financial Ombudsman Service, on the other hand, resolves disputes between consumers and financial service providers, rather than regulating the firms themselves.