Do your homework Regulator warns insurers
INSURERS will only get "pass marks" if they have done their homework right, under Ireland's new approach to financial regulation.
Speaking at the European Insurance Forum 2010 yesterday, Matthew Elderfield, Head of Financial Regulation in Ireland, said the country had "started a process of overhauling (its) approach to financial regulation" to bring in a more effective mix of both rules-based and principles-based regulation.
Mr Elderfield said, in relation to regulating insurance companies, his office was "prepared to hand out pass marks, but only if insurers have done their homework properly".
He was "cautious about over-learning the lessons of the banking crisis for the insurance industry" as insurance was "inherently different".
But he stressed that insurers should learn, from the banks' experiences, to "take a sceptical and challenging view" of risk management practices.