The Association of British Insurers has published a report setting out its preferences for the regulatory environment in the aftermath of the financial crisis. The report sets out some high level proposals as to how the financial services industry and public bodies can rebuild public confidence.
The report sets out what the ABI believes consumers have the right to expect from the insurance industry and public authorities:
A safe and secure financial services system
Enhanced cooperation between the Tripartite Authorities will help to secure a financial services system that is responsive to change but should not require major structural change.
Prudentially sound firms
The highest standards of prudential supervision will be required but box-ticking should be avoided.
Competition and innovation
Regulators should find a way to preserve the competitiveness of the market and avoid unnecessary product complexity. In particular, the ABI states that it wants “the Financial Ombudsman Service to focus on arbitration, not policymaking”
Regulation that works across borders
The regulation of markets on an international basis: with an EU supervisor of supervisors.
Capital markets that are connected to consumer needs
The ABI wishes for fair value accounting to be preserved as the basis of financial reporting and for new steps to strengthen governance.
For further information: Regulation and Markets for the 21st Century