Will freeing up capital innovate protection?

The FSA’s consultation paper – Prudential changes for insurers – proposes to free-up capital by applying the ICAS regime for with-profits business to non-profits business as well. It claims the changes will free up about £4bn of capital across the life insurance industry, as the ICAS regime requires insurers to make their own calculation of the level of capital needed for their business. But will this extra capital have any positive effects on the protection industry, for example by encouraging greater innovation and growing the market? Nick Kirwan, protection market director at Scott...