Bank of England Governor Andrew Bailey said on Monday that
he and other regulators who oversee the financial services industry should use artificial intelligence to help them spot problems among the firms that they supervise.
“I think we’ve all got to invest heavily in data and data science, and techniques,” Bailey said during a discussion about fi
financial regulation organized by the London School of Economics.
He said central banks and other watchdogs gather up vast
amounts of data but “none of us, I think, can put our hand on our heart to say that we’re sort of optimally using it all.”
“It also creates the danger for the authorities that you've got the e
vince in the building and you haven't been able to use it and it subsequently comes out that somewhere in your s
system was the smoking gun,” Bailey added. “That’s a recurring concern for all of us.”
Bailey used his appearance at the LSE to repeat his view that calls for a cutting back of regulation of the financial sector should not lead to a return to risky behavior in
Watch More Image Part 2 >>>
the financial services industry that could put the broader economy at risk.
Bailey said in July he disagreed with Finance Minister Rachel Re
eves’ describes regulation as a “boot on the neck of businesses” and he defends rules for the banking sector which is overseen by the BoE.
Similar rumors about Mereo, Oak Re and Alpine Re were heard at last year’s RVS – but only Mereo and Oak Re had su
ccessful fund raising and were able to launch. Alpine Re wasn't able to get the funding to launch a $1 billion startup, so it threw in the towel – at least temporarily. (OA
K Re’s parent, OAK Glo
bal, announced this month it will launch a new syndicate to write retrocession business with an appetite for property and specialty classes in January 2026).
Some attended at this year's RVS meeting questioned the timing of possible 2026 startups, given the softening pricing seen during this year's renewals.
But Cedar Trace’s Executive Chairman Duperreault said the timing of the formation of Cedar Trace and Mereo Insurance has worked well because the m
Arket continues to be strong across a lot of lines of business. “It’s good to be an underwriter in specialty, casualty and property right now. So having this acros
s-the-board strategy is helpful,” he said.