LIVERPOOL insurance giant RSA is part of a pilot scheme to develop a new Europe-wide shake-up of capital rules.
RSA and three other financial organisations from across the continent have worked with industry watchdog the Financial Services Authority (FSA) on the creation an internal company model which would meet new tougher requirements of the regulator and the new legislation.
The new European rules, known as Solvency II, could be introduced by 2012 and would determine the amount of capital reserves insurers would need to hold, based on a sophisticated risk assessment.
It is understood that companies without an adequate internal model could see their capital requirements rise markedly.
RSA chief executive Andy Haste said his group will be ready for Solvency II.
“We would consider ourselves at the forefront in terms of the work we’re doing with the FSA.
“We are one of the firms involved in the model approval process.”
He added: “It’s very good to be in the tent with the FSA on that stuff.”
