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Abstract
World over, the changing economic environment with characteristics
such as globalization, deregulation, demutualization,
and consolidation are throwing newer challenges to the
insurers. UK with the third largest insurance industry
in the world with 9% of global premium is also impacted.
The happenings in the UK insurance market have not
been very encouraging with scandals and failures that,
on one hand eroded consumer confidence and on the other
hand made the availability of safe and secure insurance
availability a matter of chance. Such a milieu resulted
in the British Government to initiate a reform in the
regulatory structure leading to the creation of Financial
Services Authority (FSA) on 01 December 2001 vide the
Financial Services and Market Act 2000. FSA is designated
as the apex body for regulating the entire financial
services businesses including insurance.
This paper dwells on the various incidents in the
UK insurance market that led to these regulatory changes,
the impact of the proposed regulatory regime, the future
trends, and how insurers could harness the power of
information technology to make compliance easier.
Author
Subhobroto Ghosh
To know more about Wipro in insurance, go to www.wipro.com/insurance
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