The insurance regulators in Australia and the UK have been under the gun recently following various collapses. Although both APRA and the British Financial Services Authority have stoutly defended themselves and maintained they’re not there to stop insurers floundering, there has been a lot of attitudinal change.

Now the FSA has warned the market that it will scrutinise their capital and claims reserving policies much more closely following the collapse of Independent Insurance and Equitable Life. Chairman Howard Davies agreed with critics that the FSA needs to change its approaches to prudential regulation and more closely integrate the work of its actuaries.