The International Association of Insurance Supervisors’ (IAIS) bid to regulate globally important insurers fails to present a clear view on systemic risk in the sector, resulting in incoherent measures, according to the Association of British Insurers (ABI).

The implications of proposed regulation have not been considered fully, it says.

The ABI and other respondents to the IAIS consultation on regulating insurers considered as being “too big to fail” say traditional insurance does not present a risk to global financial stability.

Insurers claim they have been tainted by the activity of banks in the global financial crisis.

The ABI says some of the IAIS recommendations are not possible, while the Geneva Association industry think tank says the methodology and measures “do not sufficiently match the specifics of the insurance industry and therefore will have significant negative consequences on the industry”.