FSA introduces new insurance rules

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New rules for insurance companies calculating capital requirements kick in today as the effects of recommendations in the Tiner Review start to be felt.

From today insurance companies will have to more closely match capital held to the risks associated with business written. Those writing with-proifits business wil be required to use the greater of a capital adequacy figure calculated according to statutory or realistic reporting figures. Those providing general insurance will be able to continue using statutory reporting figures, but will also be required to provide risk-based capital calculations to the FSA. So-called Individual Capital Assessments provided to the FSA will be met with the regulator's own Individual Capital Guidan...

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