FSA keeps up pressure on insurers to improve risk management

The current trading and economic environment has “reduced the room for error” and put insurers under renewed pressure to understand their risks, according to a new sector briefing on risk management from the Financial Services Authority (FSA). Written even before the most recent bout of turmoil, the FSA said:“Firms are operating in an economic environment that remains uncertain and in which they face new challenges”. The FSA told senior managers that this new environment means they must have a “clear appreciation of their risks and of the actions needed to manage them”.