The ABI has warned the Treasury not to apply proposed prudential stability rules for the banking sector to its own members.
Insurers are worried the Chancellor may seek to read-across new rules for banks to insurance companies when they may not be suitable, and are also worried about the effects new regulation will have on competition.
The ABI is keen to emphasis that insurance and banking are very different, with short-term liquidity risk not forming a major concern for insurance companies.
It says a read-across of prudential stability solutions for the insurance sector could be damaging.
"The Turner Review is an important milestone in the path to a new regulatory world," says ABI director general, Stephen Haddrill.
"We have made it clear that it must not be shaped by a reaction to bank specific problems alone, but recognise the different needs of insurers and the macro problems that affect us all."
The ABI is also concerned over-regulation of the banking sector could have serious implications for insurers as investors.
"Insurers are major investors in the banking industry and any ill-judged actions by the regulator or Government could create serious losses for insurers as investors," a spokesperson says.
"Any resulting lack of confidence in the banking sector will make it much harder to attract new capital from investors."
Earlier today, the chancellor claimed the tripartite regime of regulation was not to blame for the near-collapse of the banking system, despite widespread criticism of the way responsibility was divided between the FSA and the Bank of England.
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