Future of UK insurance accounting
The UK Accounting Standards Board (ASB) is seeking views on insurance accounting. This arises from the ASB’s new proposals for the future of financial reporting standards in UK GAAP, which have significant implications for the ABI’s SORP and the ASB’s FRS 27, Life Assurance, and may affect many UK insurers’ accounts – including those based on IFRS. Statement.

ABI responds to FSA Fees Consultation Paper
Otto Thoresen, Director General, ABI said: “This massive increase in regulatory fees comes in a year when insurers already face increased costs associated with implementing the Retail Distribution Review, Solvency II, changes to gender risk pricing and auto-enrolment. We knew that there would be a cost involved in moving to twin peaks regulation but, in this difficult financial environment, all organisations need to be focussed on controlling their costs. While insurers will do their best to absorb these costs, some will inevitably be passed on to the small companies and private individuals who are customers of the insurance industry at a time when they can least afford it.”

Cold weather warning
As the cold snap grips much of the UK, ABI reminds homeowners to takes steps to reduce the misery of frozen and burst pipes.

Responding to Environment Secretary Caroline Spelman’s comments about insurers looking for a subsidy ABI Director General Otto Thoresen said:
“We are not arguing for a subsidy to benefit insurers. We want a long term solution, negotiated constructively with the Government, that will help the insurance industry continue to protect 200,000 at risk households. As is the case throughout the world, the government has to be at the heart of any solution – as an insurer of last resort, offering support to those most at risk, or through a number of other options. We are increasingly concerned the Government is putting far too much store on the potential benefits of a fund for low income households which would benefit only a fraction of the 200,000 high risk households at risk of losing their cover.”  

The ABI has analysed Environment Agency data to reveal the areas that could struggle to access affordable flood insurance if the Government fails to agree a sustainable way forward with the insurance industry. Statement.

The ‘new normal’ set to redefine the UK insurance industry
ABI’s Director General Otto Thoresen sets out how the ‘new normal’ emerging from the 2008 financial crisis is set to redefine the role of the insurance industry.More> 

ABI welcomes Government plans on Executive Remuneration
Responding to the Business Secretary’s Statement  Executive Remuneration, Director General Otto Thoresen said:  
“This is a welcome package of measures which, taken overall, will help shareholders establish stronger links between pay and performance and tackle excessive pay for failure. Investors want simpler pay structures, better accountability to prevent reward for failure and greater transparency on how rewards are calculated, including by consultants. This is a step forward on all three fronts.  
“The task ahead is to work with the Government on getting the detail right on complicated areas such as forward-looking votes and to ensure that the ambitious proposals announced today become the standard practice of tomorrow.”

The cost of motor insurance
Responding to the Transport Select Committee report on the cost of motor insurance, ABI, while welcoming the Committee’s recognition that spiralling legal costs are the main reason for rising motor insurance premiums, reiterates that referral fees must be banned across the board and legal costs reduced. Press release.

Responding to the Prime Minister's comments on the need to tackle the compensation culture. 
Otto Thoresen, Director General of the Association of British Insurers, said: