What aspect does the PRA offer protection for?

The correct choice refers to the protection offered by the Prudential Regulation Authority (PRA), which primarily focuses on safeguarding the interests of policyholders. The PRA is a regulatory body in the UK that supervises banks, insurers, and investment firms, aiming to enhance the stability of financial institutions and ensure that they can meet their obligations to policyholders.

This includes ensuring that insurance companies are financially sound and can pay claims, which directly protects policyholders who expect to receive the benefits of their insurance contracts. By maintaining robust capital requirements and encouraging effective risk management, the PRA helps to create a secure environment for policyholders, enabling them to have confidence in their insurance products.

The other options mentioned, such as taxpayers, shareholders, and investors, are not the primary focus of the PRA's regulatory framework. Instead, the PRA's responsibilities are geared towards ensuring the stability of the financial system and protecting those who have a direct relationship with authorized firms, making policyholders the central concern.