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Consultation period ends for new capital adequacy rules.

Europe Intelligence Wire

| December 01, 2003 | COPYRIGHT 2003 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Insurance Day)

Byline: Adrian Ladbury

THE consultation period for CP 190 and CP 195, which set out the UK finance regulator's proposed new capital adequacy rules for non-life and life companies respectively, ended yesterday.

Experts say the industry is broadly supportive of the proposals because they make good business sense and is getting on with the preparation.

But they have found the shift to the new regime is taking up considerable time and money and needs senior-level involvement.

It is envisaged that Lloyd's will be regulated under a different set of proposals. So CP 190 will directly affect members of the International Underwriting Association (IUA) and Association of British Insurers (ABI).

Neither association was able to discuss the details of its advice to the Financial Services Authority (FSA) on CP 190 as Insurance Day went to press on Friday. But an IUA spokesman did say: "We have no concerns with risk management but are more concerned about the timetable and how it fits in with Solvency II [the EU's proposed new solvency regime]."

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