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Developing an Insurance Capital Standard ABI comment

Hugh Savill, Director of Prudential Regulation, ABI has commented on the development of a global insurance capital standard by the International Association of Insurance Supervisors (IAIS).

In a letter to the FT Lex column today (15 October), Savill said:

"Sir, With reference to Lex on insurance regulation (October 11): the development of an insurance capital standard is a significant development. The question is: what kind of international standard will this be? A standard that encourages national regulators to co-operate would be a step forwards.

"A standard that is applicable to banks may not be suitable when it is applied to insurance and unnecessarily raises capital levels, and would bring a concerned look to the faces of insurers’ customers around the world.

"I take issue with Lex on timing. A 2019 implementation date is challenging, and insurers should be concerned now. For European insurers in particular, we face the prospect of introducing Solvency II in 2016, only to have to amend it by 2019 to meet a different global capital standards."

Want to know more? Join the ABI and other leading figures from UK and European regulation at our Solvency II conference on 31 October 2013. 

Last updated 01/07/2016