SMCR extension could be culture shock for insurance sector

Author: Olly Jackson | Published: 18 Dec 2018

The extension of the senior managers and certification regime (SMCR) to include insurers this month could cause a talent drain in the industry and be a major culture shock given that the regulation was specifically designed for retail banking, sources told IFLR.

Naomi Bowman, managing director of Berkeley Research Group, said that the SMCR could cause fundamental skills in the marketplace to decline.

"Insurance profit and loss statements [P&Ls] can be more complex than in other financial segments and senior executives in insurance tend to stay in the industry, moving from one company to another," she said. "The talent drain could be worse than in retail banking, because the insurance sector is particularly niche."

An IFLR article in March found that the regulation, together with the General Data Protection Regulation, could deter many retail bankers from taking on senior roles. The SCMR was specifically designed for the retail...