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
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...