1. 20 things for mutual insurers to do in the next 500 days
Martin Shaw
Association of Financial Mutuals

2. 2012 is a landmark year…

3. … and then there is financial services

4. Regulatory forces today
1. Not just Solvency II
Solvency II
IFRS
Change to IMD/ PRIPs/ MiFID etc
2. FSA now policy implementer more that developer
Mutual capital/ with profits
RDR- any read across to protection?
Corporate Governance
New regulator now less likely but other change likely
3. Already seeing:
austerity measures
Tax changes
Equalities Bill
CTF change
4. Competition squeezing out smaller firms
Consolidation
Uncertainties in markets
Don’t forget consumer market

5. 1. Solvency II and new regime for non-Directives
2. Accounting rules overhaul- IFRS
3. Change to other European Directives (such as IMD/ PRIPs/ MiFID) and Euro regulators

6. FSA now a policy implementer more than developer
With profits review/ Chrysalis
Retail Distribution Review
Reverse stress testing
New conduct strategy/ product regulation
Corporate governance changes
New regulators

7. Austerity measures
New tax rules for insurers
Gender Directive/ Equalities Bill
Welfare reform
Changes to savings products

8. Competition for new business, particularly in GI
Ripple effect of changes/ trends within wider insurance market
The potential for further consolidation
Uncertainties in markets and equities
Risk of falling consumer confidence and ability to pay/ save

9. Actions to take… Don’t just focus on Solvency II
Conduct a gap analysis
Conduct effective risk planning
Develop an integrated plan
Ensure senior manager/ Board commitment
Link plan to broader corporate strategy
Know what good and bad outcomes look like
Constantly monitor

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