Press Release

NEW GUIDANCE ON INDIVIDUAL CAPITAL ASSESSMENT (ICA) LAUNCHED BY INSURANCE INDUSTRY

2 February 2007

The ABI, in partnership with ILAG, the IUA, Lloyd’s and the LMA, today published ‘A Guide to the ICA Process for Insurers’.  The guide complements the updates made to the ICA regime on 31 December 2006 with additional advice and examples of good practice aiming to help firms in preparing their ICA.

Peter Vipond, ABI Director of Financial Regulation and Taxation, said:

“This industry guide complements the FSA’s high-level rules with practical guidance for firms about how to ensure they are properly capitalised against the risks they face.  We hope it will make an important contribution to the development of the ICA regime”.

Sarah Wilson, Insurance Sector Leader, FSA, said:

"We have worked closely with the insurance industry to develop this helpful piece of guidance.  It provides commentary and examples of how firms may achieve our standards and objectives for Individual Capital Assessment.

"We are now considering the feedback to our recent discussion paper on Industry Guidance, which will help to inform the development of our new principles-based approach to regulation."

An ABI conference on 6th March 2007, “Thinking for tomorrow: ICAS 2007 and the path to Solvency II”, will bring together FSA and industry speakers to explain how the new principles-based ICA regime will work, including the role of industry guidance.  The conference will also provide delegates with an insight into the future requirements expected under Solvency II.