|Copyright:||(c) 2011 A.M. Best Company, Inc.|
|Source:||A.M. Best Company, Inc.|
In its attempt to understand the changing nature of financial services regulation in the
Under plans being made by the coalition government that has been in power since 2010, the
“The split from the FSA into twin peaks does actually raise a number of issues,”
Parliament, Adams said, has charged regulators to deliver on financial stability and consumer protection.
“The government has clearly chosen to do it through a system of twin peaks,” Adams said. “And our job is to make that work in practice.”
Adams rejected any suggestion that the FSA had been overly concerned during the past seven or eight years with insurance conduct. He attributed the success of the
Piper declared a personal interest in the discussion, in that he has worked for the “one-stop shop” of the FSA. He also recounted his background in
The change that is coming in the
Rising costs connected with changes in regulation have occurred worldwide, with the policyholders ultimately picking up the tab, Piper said.
The end of the FSA will mean the end of a central supervisory point, Piper said. “People will have to have different relationships with the new authorities,” he said.
One of the benefits, as seen in
The dual approach can bring advantages internationally, Piper said, by putting greater emphasis on conduct of business.
Looking over the next five years, Piper said he expects issues in relation to EU policy to play a greater part in regulation. This could lead to attention being paid to group supervision, he said.
“I could well see in five years’ time that group supervision is actually centralized in EIOPA” [the
“It might be good news for the industry in terms of having some consistent harmonized approaches to the supervision of these large insurance groups,” Piper said.
The insurance industry “is facing enormous change,” said
Eaton supported the idea of regulatory convergence in
Eaton expressed sympathy for the idea of a “single rule book” that would apply across the EU. But he criticized what he called “gold welding,” which he said involved adding locally driven complexity to rules that emanate from
But with the regulations coming increasingly from
The FSA’s Adams made a pitch for sympathy from the audience. “It’s a dog’s life being a supervisor,” he said. “When I go home, my wife tells me that everything’s my fault. When I come to work everyone tells me that everything’s my fault.”