The Financial Services Authority has set out its plans for "significant and far-reaching" changes to the regulation of the UK insurance industry.
The city watchdog said the changes would help consumers get a fair deal through strengthening the disclosure regime.
It said it intended to tighten solvency requirements and senior managements' responsibilities, and to "deliver
`smarter' insurance regulation ... not necessarily more rules".
The FSA has also started the Tiner Project, to develop its regulation of the insurance industry. The project will be led by FSA managing director of consumer, investment and insurance matters, John Tiner.
Tiner said the FSA would take a more proactive, risk-based approach to regulation and develop a more effective relationship with the insurance industry.
"Our new approach will, among other things, boost the regulator's ability to identify possible issues earlier on and proactively nip problems in the bud," said Tiner.
A full report on progress made under the Tiner Project will be completed by September 2002.
