The ABI has given its backing to a discussion paper published today by HM Treasury and the FSA on the supervision of insurance groups.
Peter Vipond, the ABI's director of financial regulation and taxation, described the approach to group supervision as "a key test for the success of Solvency II".
Commenting on the proposal, he said, "Today's proposal will streamline group supervision and allow these groups to manage their risks and their capital more efficiently."
Furthermore, Vipond believes the proposal will help clarify the roles of the lead and local supervisors, so avoiding any duplication of work, thereby reducing the regulatory burden on insurance groups.
“Making a success of group supervision under Solvency II is therefore also a wider test of making the single market work.”
