The Association of British Insurers' (ABI) first annual conference saw a host of speakers from the i...
The Association of British Insurers' (ABI) first annual conference saw a host of speakers from the insurance, trade and political sectors commenting on market conditions and the future of the insurance industry. Speakers included Sir Howard Davies, chairman at the Financial Services Authority (FSA), Patricia Hewitt MP, Secretary of State for trade and industry and Brendan Barber, general secretary elect of the TUC.
Discussion topics focused on forthcoming FSA regulation, competitiveness within the market and the role of insurance in serving society and consumers. In his keynote speech, Mike Ross, chairman of the ABI, called for fundamental reform of insurance and a clearer regulatory regime.
'We want proportionate regulation and partnership with the Government. My message, not just for the FSA but also for the European Commission is this: I doubt if we need extra regulation. Let's all agree that we need better regulation,' he said.
Davies admitted the industry has experienced turbulent times over the past three years and outlined the main lines of the FSA's reform programme.
'In future, we wish to adopt for the insurance sector a three pillar approach,' he said. 'First, there will be a basic minimum capital requirement. Pillar two will be a supervisory review and pillar three is an enhanced disclosure regime allowing customers and counterparties to make better decisions, strengthening market discipline and reducing the need for intrusive regulation,' he said.
