David Strachan, Director Insurance Firms Division, said:
"The publicly available Annual Return for insurers is an important document which we use to help assess the financial condition of insurers and how they are meeting their obligation to treat customers fairly. It is also heavily used by market analysts, consumer organisations, financial commentators and others with an interest in insurance.
"The current format of the Annual Return has evolved over the years and has become unnecessarily complex and unwieldy, such that it is difficult even for expert users to understand. The amendments we are proposing for the Annual Return are designed to improve the timeliness and quality of analysis of the information, increase the transparency of the key risks which firms face, and allow easier comparison and benchmarking of firms. Ultimately, the revised Annual Returns should enable us and external users of the return to make better informed decisions about the industry as a whole."
The Consultation Paper published today also re-consults on more consistent and clearer arrangements for the Directors’ certification of the Annual Return and associated audit opinion, and the introduction of a reviewing actuary's opinion for life insurers.
The proposed new arrangements are intended to come into effect for financial years of firms ending on or after 31 December 2004.
