Four UK insurers worked with FSA on internal risk modelling
RSA and Catlin are two of four UK insurers to have worked with the Financial Services Authority (FSA) to pilot Solvency II regulations, the FT reports.
They have helped design the internal models and how they will be approved by the regulator.
Andy Haste, chief executive of RSA, said: "We would consider ourselves at the forefront in terms of the work we're doing with the FSA, we are one of four firms involved in the model approval process. It's very good to be in the tent with the FSA on that stuff."
Internal models approved
Paul Martin, head of enterprise risk management at Catlin said: "The pilot was about getting your own internal model approved and if you do that you're in control of your own economics. We had an in-depth dialogue with the FSA for three or four months."
Other companies involved are believed to include a smaller life assurer and a composite insurer.
Haste said that RSA supports Solvency II but shared wider concerns that the Committee of European Insurers and Occupational Pension Supervisors (Ceiops) had been too conservative in its final advice to the European Commission, which sets the rules.
"We take comfort from the fact that the European Commission has now got its arms around [Solvency II] . . there's been a lot of commentary that what came out of Ceiops isn't what was intended by the [original legislation]," he said.
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