The Financial Services Authority (FSA) is "keen for change" and "not dragging its heels" with its solvency review, set for publication in 2004, according to a leading actuary.

Peter England, of EMB, said the FSA was progressing faster with its review than the European Commission.

But this would not pose a problem because the FSA was likely to be stricter, so would satisfy EU guidelines.

"The rules might change slightly with the release of the EU solvency review but the FSA is pre-empting what is likely to happen," he said.

This issue was discussed at a solvency conference for UK insurers last week, which highlighted the importance of reviewing the system.

The event, hosted by KPMG and the Association of British Insurers (ABI), discussed issues arising from KPMG's report on the solvency system within the European insurance industry.

The report explores a move to a solvency framework - Solvency II - which would reflect the consistent valuation of assets and liabilities.

It would also take greater account in the required capital of the risks insurers face.