Regulator must consider competition

Stephen Haddrill, director general of the Association of British Insurers, explains why competition needs to be working to full effect before regulatory intervention can be justified and why he believes the FSA’s regulatory duties should be expanded to include the promotion of competition. Addressing an audience gathered for the ABI’s better regulation conference, Mr Haddrill also scratches beneath the surface of principles based regulation to find that not all insurers are happy with the change in direction.

The growth of regulation is not a new phenomenon. But over the last 20 years the rule books have fattened like our bellies at Christmas. Business has groaned with indigestion. Consumer groups have hungered for more. Why is this happening? Is it just because legislators cannot help legislate, and regulators shrivel without a fresh regulatory morsel to implement?