Regulator eases capital requirements, according to reports.

The FSA has eased some of its capital requirements for life insurers in response to the crisis in global markets, according to a report in today’s Financial Times.

As the spotlight turns on Solvency II, the regulator has taken the first step towards acknowledging that capital adequacy requirements must be revisited.

Following lobbying from the Association of British Insurers, the FSA is understood to have told insurers that it is prepared to be flexible if they have difficulty in meeting their capital demands.