The FSA’s Individual Capital Adequacy Standards briefing shows UK insurers are well placed to tackle the challenge of Solvency II according to the Association of British Insurers.
ABI director of financial regulation and taxation Peter Vipond says the FSA’s Insurance Sector Briefing ‘ICAS – Lessons learned and looking ahead to Solvency II’ will help insurers prepare for Solvency II, which will see them face a tougher internal model approval process.
Vipond says: “We are working to ensure the UK insurance industry is well placed to receive the full benefits of the Solvency II regime from day one. Although Solvency II is not expected to be in place until 2012, our experience with Basel/CRD leads us to believe the effective deadline for developing a Solvency II-ready internal model is likely to be the beginning of 2010. This document is a useful starting place for the work ahead.”
He says the FSA recognises the close co-operation and hard work of insurers and the ABI in developing the ICAS regime, which has helped the move towards a more principles based approach to regulation.