FSA record good and insurers must embrace Solvency II

Aviva chief executive Andrew Moss says in the Telegraph that better regulation by the Financial Services Authority (FSA) since 2004 has helped insurers “weather the storm”.

But he says: “One of the biggest challenges facing our industry is continuously improving confidence in insurance products.”

And he calls for insurer to embrace Solvency II but hints that changes must be made. “That is why, as an industry, we must work with regulators and policymakers to make sure that the technical details are carefully crafted,” he writes. He specifically targets annuities regulation.

Solvency II is ambitious

He says: “For the insurance industry, the directive underlines the innovative and forward-thinking approach the European Union is taking to insurance industry regulation. Solvency II is undoubtedly ambitious, but it is achievable. Design of the technical rules relies heavily on a consensus-building process, and we must now harness the appetite for change across the industry to make sure that the details are practical.

“Sound risk-management and governance have always been at the heart of our business. This is what gives our customers confidence in our products and allows us to respond quickly and effectively to their changing needs. At our best, what we do allows individuals to protect themselves against the unpredictable and prepare for the uncertainties of life.

And he says this will not just help customer but will “firmly anchor our industry as a major contributor to economic prosperity and development”.