Christopher Croft, CEO of broker body LIIBA, says governmental input into the UK’s future financial services regulatory regime has so far contained many of the ingredients needed to foster a vibrant commercial insurance sector, capable of flourishing across markets globally.
However, Croft stressed how the “proof is in the pudding” and that its success will ultimately depend on how unadulterated the final version is implemented.
“As most of our members’ business is international, we particularly welcome the proposal for a specific ‘growth and competitiveness’ mandate for the regulators,” noted Croft.
“it is especially welcome that this is to be an objective with teeth in that FCA will be asked to report on its adherence to it annually.
He continued by highlighting the significant and growing competition from the other centres globally, and that that the current regulatory framework has evolved into a disproportionate regime unnecessary in both burden and cost to the commercial insurance sector, “particularly for those serving large, complex and international clients.”
“The Treasury’s approach is a step in the right direction. We commend them for seeking to design a regime that will maintain the UK’s global competitiveness and export revenues,” Croft concluded.