In a bid to maintain principles-based regulation for the financial services sector, the UK’s Financial Services Authority will examine whether the regulatory regime for insurance can be lightened.

Chancellor of the Exchequer Gordon Brown and Economic Secretary Ed Balls have also indicated one of the proposals will involve the modernisation of the wholesale insurance market.

It’s part of a program to enhance the London financial market’s competitiveness. The wholesale insurance market modernisation is being led by Lloyd’s Chairman Lord Levene.

“Working with key players in the sector, Lord Levene will develop a plan to deliver further market reforms to improve efficiency, building on the recent introduction of some electronic trading, and, in parallel, the Government will examine the business environment for the wholesale insurance sector,” Mr Brown said.

Mr Balls says this signifies a time of great opportunity for financial services in the UK.

“I’m convinced there is a common understanding and a unity of purpose behind the agenda of making London and the UK financial sector the world leader.”