International

Regulatory reform priority in 2009

The economic crisis has turned the spotlight on the need for a more robust reporting and regulatory system, according to insurance consulting firm, Watson Wyatt. Craig Buck, US head of insurance consulting at Watson Wyatt, commenting on likely trends over the coming year, said that in some cases reforms were already in the process of being proposed or implemented when the crisis hit. However, as a result of the crisis, there are likely to be modifications to the proposed changes based on the lessons learned, while at the same time the emphasis on adoption and implementation of new methodologies is likely to increase. Regulators are also becoming more aware of the challenges of regulating in a dynamic environment. Richard Holloway, Asia Pacific head of insurance consulting at Watson Wyatt, predicted that regulators in the region will be increasingly concerned with the risk management capabilities of both local and international insurers and their ability to meet rising capital infusion requirements of insurance operations. Martin Pike, European head of insurance consulting at Watson Wyatt, described 2009 as a critical year for European regulatory reform. “2008 closed with disagreement between the various representatives of the Member States over key elements of the Solvency II initiative and we believe that these issues must be resolved quickly,” Mr Pike explained.