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Regulator brands Solvency II costs 'indefensible'

by Alex Steger on Feb 07, 2013 at 07:55

Regulator brands Solvency II costs 'indefensible'

The Financial Services Authority (FSA) has branded the cost of implementing EU insurance regulation Solvency II ‘frankly indefensible’, according to the Financial Times.

The paper reported that Andrew Bailey (pictured), head of the FSA prudential business unit, called the plans ‘shocking’ and said the costs, estimated to be over £3 billion to UK insurance companies alone, were ‘frankly indefensible'.

Bailey also expressed scepticism at the new timetable for the already much delayed reforms, which are now unlikely to come into force before 2016, the FT reported.

3 comments so far. Why not have your say?

Jonathan Kirby

Feb 07, 2013 at 09:04

So how come they don't feel the similar cost of their pointless RDR indefensible?

On a different subject, is the government finally waking up to the fact that they should listen to the people involved as I see the plan to scrap GCSE's has been dropped in favour of a plan to improve. That was all that was needed for financial services.

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Julian Stevens

Feb 07, 2013 at 09:24

The FSA's original cost estimate for implementing its RDR was £600m but, over the years, the figure has ballooned to more than £2Bn, towards which the majority view is that such a huge increase is indefensible. Yet the FSA has steadfastly ignored all and any objections to this increase. It hasn't even attempted to defend it, its stance being that its RDR will make the industry a better place so you'd all better get with the programme or get the hell out.

For the FSA now to be labelling this latest EU imposition as indefensible (unwelcome though it is, like most of what comes out of Brussels) is just a bit like the pot calling the kettle black, is it not?

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Telford MS

Feb 07, 2013 at 10:49

Why are we under the illusion that this is a cost to the insurance companies.

It is a cost to their clients.

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