Bank of England deputy governor Andrew Bailey believes there is a ‘good argument' for a macro-prudential response to certain insurance sector developments – but stressed there is no need for action today.

Bailey told an audience at the Bermuda Monetary Authority the risk of pro-cyclical asset liquidation by insurers in response to "sharp asset price corrections" could warrant a macro-prudential response.

However, he said, the evidence on whether insurers have behaved pro-cyclically in the past