Insurers spend 1% of GWP on compliance

UK general insurers spend about 1% of their gross written premium (GWP) to meet tough regulations, according a survey by Reynolds Porter Chamberlain (RPC).

Solvency II alone has hiked insurers’ compliance costs 75% over the past three years, according to the Financial Times, while some insurers’ compliance bills were increased 400% by the capital requirements.

The RPC survey only accounts for direct costs of regulations, such as wages for compliance staff. It does not include costs for legal and accountancy advice, for example.