The increasing burden of regulation is the biggest worry for insurers in both the UK and US, according to the findings of a new survey conducted by a major accountancy firm.
PricewaterhouseCoopers (PwC) and the Centre for the Study of Financial Information surveyed 100 companies and revealed that large numbers are particularly concerned about the impact of interfering regulation.
Indeed, red tape now represents a bigger worry for insurers than natural catastrophes and climate change - in spite of the introduction of principles-based regulation designed to ease regulatory burdens, the report revealed.
Mike McColgan, Partner and Metro Insurance Leader at PwC, commented: "The focus on regulation will only increase over the next few years, as insurers face a number of new demands, not least the coming overhaul of financial reporting and Solvency II."
Risk management
Mr McColgan added that the "key challenge" for companies is to find a balance between compliance and effective risk management, while improving business execution.
The survey also found that quality of management and cycle management rank highly on the list of insurers' concerns.
Recently, the US Securities and Exchange Committee announced an easing in the rules for small businesses' compliance to the Sarbanes-Oxley Act, which was introduced following a series of corporate scandals.
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