• A creation of the industry, following exclusion of General Insurance from government proposals for statutory regulation of financial services.
• A self regulatory body - but not an SRO like SFA
• Not accountable in a formal sense to anyone other than its members
• Not a trade body
• Legally a company limited by guarantee, owned by its directors - for the time being

What are its objectives?

• To create a single uniform system of regulation for general insurance done in the UK
• To protect consumers
• Based on appropriate and proportionate regulation
• Which reflects good business practice

What has it achieved so far?

• Rules and Guidance
• Members
• Monitoring
• OFT Clearance - the necessary glue to the system

What are its prospects for success?

Strengths

• There is a system
• Coherent and Single
• Well supported
• Government wants it
• Reflects good business practice pitched at a level which can encompass divers industry

Good for Competition

• Promotes a coherent system
• Administered by an Independent Body
• Recognises different circumstances of firms - codes + financials
• Does not inhibit product choice
• Facilitates opening of Lloyds

Good for Consumers

• Direct regulation
• Customer Codes
• Complaints Handling
• Monitoring
• Financial requirements
• Competence and training

Weaknesses

• Self Regulation itself
• Compromise
• Presently voluntary and inability to intervene
• Not all insurers members
• Take on the big boys

What are our critics saying?

• You don't need a single regulator
• You don't understand those for whom insurance is a secondary product
• You have bitten off more than you can chew

What are the big issues?

• Managing change
• OFT appeals
• Consumer education - engagement with customers
• Communication with members
• Implementation of F42
• Proving we are a credible and responsive regulator
• Governance
• EU Directives

What will all this mean?

• We have a powerful endorsement of the regime
• Not an oppressive regime
• Just good practice
• Are we going to turn nasty?
• An exploding bureaucracy?
• Use the OFT decision to beat the industry over the head?
• We have set out our monitoring (observation of compliance/active advice to bring firms into compliance) and enforcement (corrective/penal) approach
• Outsourcing philosophy and no room at Cannon Street
• OFT decision facilitates the establishment of a single coherent system