The three main UK political parties have acknowledged the strength of the British insurance industry by pledging to keep their regulation distinct from the rules governing banks.

It follows concern that onerous regulation is forcing financial services companies to relocate away from Britain.

Industry publication Insurance Times says support for the insurance industry has been strongly voiced by spokesmen for both the Labour Party government and Conservative Party opposition.

Financial secretary to the Treasury Stephen Timms says the insurance industry “has borne up pretty well through a very, very testing period. That reflects well on the industry and the way it has been regulated.”

Conservative shadow financial secretary Mark Hoban says his party – which enjoys a consistent lead in opinion polls – would not increase regulation of the sector if elected to government.

Liberal Democrat shadow chancellor Vince Cable promised “greater certainty” over tax and regulation, but dismissed the insurance industry’s calls for lower corporation tax.