In a move aimed at stimulating economic growth and enhancing the UK’s competitiveness, H.M. Treasury has released an Action Plan to reform regulation, focusing on cutting red tape for businesses.
London insurance market organisations have responded positively to the UK Government’s policy paper welcoming a ‘new approach to ensure regulators and regulation support growth.’
The publication, titled “A New Approach to Ensure Regulators and Regulation Support Growth,” outlines key strategies to streamline regulatory processes and foster a more business-friendly environment.
It argues that the current UK regulatory system is ineffective and hinders growth and private sector investment in the country.
One clear example of this is the high administrative costs for businesses, which arise from excessive reporting requirements and other time-consuming activities, such as form-filling, H.M. Treasury stated.
The Action Plan proposes a series of measures designed to ensure that regulators actively support growth and innovation.
Key principles include targeted and proportionate regulation, that is also transparent and predictable, and that adapts to keep pace with innovation.
It would also continue to build on proposals brought forward by financial regulators, including the introduction of a concierge service to facilitate new market entrants.
The London Market Group (LMG) has voiced strong support for the initiative. LMG CEO, Caroline Wagstaff, stated: “The London Market Group has consistently lobbied for a bespoke concierge service, more efficient regulatory processes, including metrics, and mechanisms to drive improvement.
“These steps, announced by H.M Treasury today, are strong responses to those asks, and critical in helping London remain the global centre for risk transfer. We are particularly pleased that the Treasury sees a key role for industry in driving the accountability of regulators in delivering this change. We look forward to the rapid implementation of all of the proposals.”
The International Underwriting Association (IUA) also welcomed the publication, highlighting its alignment with their own policy views.
Nafisah Hussain, Senior Public Policy Executive at the IUA, commented: “The vision outlined in the Government’s policy paper to ensure regulators support growth chimes strongly with the IUA’s own policy views. We agree that regulation should encourage investment and innovation.
“This is particularly important in the London insurance market which is international in nature and competes directly with other jurisdictions around the world.
Hussain further highlighted the importance of targeted and proportionate regulation, stating: “It is also vital, as the policy paper states, that regulation is targeted and proportionate. IUA member companies provide wholesale insurance solutions for large corporate clients. These sophisticated and knowledgeable clients do not require the same regulatory protection as individual consumers.
The IUA is particularly keen to see how the proposed concierge service will benefit new insurers and reinsurers seeking to establish themselves in London.
“We will now be looking with interest to see how these principles are employed in practice across our sector. In particular, the IUA is keen to see how a proposed concierge service will make it easier for new insurers and reinsurers to establish themselves in London,” Hussain concluded.
