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Don’t harm industry – ABI

Don’t harm industry – ABI

Category: Insurance

Updated: 27/11/2009
First Published: 03/06/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The Association of British Insurers' director general, Stephen Haddrill (pictured), has warned the Government not to harm other industries, such as insurance, as it sets about dealing with the banking crisis.

Any overhaul should be concentrated on fixing the problems of the banking sector and should not necessarily apply to other parts of the financial services sector, the ABI said, while regulation must not inhibit the ability of businesses to offer competitive products to consumers.

Specifically, the ABI said it was concerned at the suggestion that remuneration structures designed for banks could be applied to other parts of the financial landscape where circumstances, risks and conditions are markedly different.

The call comes ahead of the 15 June deadline for consultations for the Turner Review, which will review and make recommendations for reforming both UK and international approaches to banking regulation.

"We need targeted sector-specific changes, and not a lazy adoption of banking rules in other parts of the financial services sector," said Mr Haddrill.

"If this happens, UK based insurance companies will suffer damage to profitability, prosperity and innovation for a generation. As a global leader and major UK employer, the consequences of this would be felt throughout the British economy and beyond."

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