2009-07-01

By Editor, CIR

The chairman of the International Underwriting Association has warned against a further wave of insurance regulation being imposed on the London market.

Speaking at the association's annual general meeting, Stephen Riley said the market had made tremendous progress in its reform of processes, grown more efficient and user-friendly, and had become a leader in the use of technology. However, these efforts would be undermined if it was caught up in the regulatory backlash against the banking sector.

"The fear is that insurers, who have demonstrated tremendous resilience and strength in recent times, will once again become embroiled in wide-ranging financial services regulation," he told members.

"The key message is that the insurance model is fundamentally different to banking. Therefore any changes to regulation must be appropriate and balanced."

Mr Riley said independent research among staff at the Association's member companies revealed that 83% of respondents regarded the IUA as important to their company and 75% felt it was important to their own role.

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