The professional body for the insurance industry, the Chartered Insurance Institute (CII) has published a response to the new approach to insurance regulation.
It says, “The current restructuring of the regulatory framework provides the opportunity for a rethink. In the past, regulators have been too reactive in their approach to identifying risks to consumers as well as the overarching solvency of financial institutions. This has to change, and we are encouraged that the current proposals for conduct regulation seek to create a system that places particular focus on firms' culture as a potential root cause of poor outcomes. It is important to develop a clear framework for how the new conduct regulator identifies appropriate/inappropriate cultures. Those firms and practitioners demonstrating professional behaviour through a commitment to qualifications, continuing learning and ethical practice are more likely to provide quality advice.”