Insurers see risk diversification prize

This view comes in research done on behalf of the Association of British Insurers, which looks at how ABI members can approach the issue of preparing Individual Capital Assessment figures, required by the FSA. Consultant Deloitte says risk diversification is the key to reducing capital required under the ICA regime by between 25%-50%. Being able to reduce the amount of capital set aside is important for firms, their customers and shareholders, the ABI says, and it is important to avoid “bias towards overcapitalisation”, as that capital may be better used elsewhere. Paul Barrett, AB...