London market trade body unveils plan for next year
The International Underwriting Association (IUA) will put regulation high on its list of priorities in 2013.
Two developments in particular will be high on the London market underwriting trade body’s agenda: it will be tracking the various initiatives aimed a converging (re)insurance supervision and seeking to ensure the UK’s new Financial Conduct Authority (FCA) acts proportionately towards the wholesale sector.
In 2013, UK financial regulator the Financial Services Authority will be replaced by two bodies: the FCA and the Prudential Regulation Authority (PRA).
The IUA said representation and regulatory compliance work continues to be a prominent part of its services to member companies. In 2013, the association will monitor the continued uncertainty and delay surrounding Solvency II, and preparing for the launch of the FCA and PRA in the UK.
IUA chief executive Dave Matcham said: “The IUA has strengthened its government affairs team this year in response to a growing demand from our members for information, guidance and a representative voice in many different areas of regulation and compliance.
“In 2013, we will be working with the FCA and PRA and hope to see co-operation between the two bodies at all levels that will ensure the regulatory burden placed on companies is reasonable, cost-effective and fair.
“Elsewhere, discussions on global regulatory convergence and ideas on group supervision are important to our member companies, both in London and especially their parent organisations with which we closely liaise.
“We will also continue to follow the progress of Solvency II. IUA members have invested heavily in preparing for the new regime. Given such expense it is essential that it fully delivers on its promise to promote financial stability and consumer protection and boost business opportunities across Europe.”
Also on the IUA’s 2013 agenda is helping develop a strategy for modernising business process in the London market.
A number of proposals for the next generation of market modernisation work have been explored during 2012 under the Project Darwin initiative. Next year, the IUA expects that this work will be consolidated with other efforts to improve placing and settlement processes.
Matcham said: “The IUA is heavily involved in all aspects of the London Market’s modernisation plans and our member companies will supply many of the leading thinkers in the strategic discussions to come.
“Next year, we will also be looking to expand the scope of reforms to non-bureau premium accounting processes which have already made dramatic progress saving much time and money for those companies involved in the project.”