Amid a push for securities industry deregulation in Canada, the U.K.’s Financial Services Authority is seeking to reduce regulatory burden in the insurance business.

“Less is more” should be motto for insurance regulation, says the FSA. Consumers and firms will both benefit from a sweeping away of regulatory clutter and smarter regulation of insurance, according to FSA managing director, John Tiner.

“Smarter insurance regulation does not have to mean more insurance regulation. When we look at disclosure to consumers, for example, it is clear that less is more. It would be far more effective to give customers a small amount of genuinely useful information that they will digest than to swamp them with a lot of material that goes unread,” he said. Tiner went on to call on the insurance industry and consumer groups to work with the FSA on reforming the regulatory regime.

“Firms face difficult trading conditions and uncertainty over the future structure of the market, with regulatory, accounting and reporting changes expected in the next three to four years. Regulatory reform alone cannot maintain market confidence, but by working together we can foster the environment that strengthens consumer confidence in the sector,” he said.

“The big issue is balancing the desire for change to create a more effective regulatory environment against cost and competition issues. If our review of the insurance regime gets that right — as we intend it to — all stakeholders should see an improvement as a result,” Tiner concluded.

The FSA’s conference, Reforming Insurance Regulation, was held at the QEII Conference Centre in London.