Light touch era “over”

The financial crisis calls for a new regulatory approach for all sectors

The UK regulator has made assurances to the insurance industry that “there is no need for a revolution” in insurance regulation to match the scale of change in the banking sector. Speaking to an insurance audience for the first time since his appointment as chairman of the Financial Services Authority (FSA), Lord Adair Turner told a conference held by the Association of British Insurers (ABI) that the regulator respects the differences between insurance and banking. “The regulation of insurance companies needs to be different from the regulation of banks, even while we identify and track carefully all the potential knock-on consequences from one sector to others,” he said.