FSA provides relief to insurers on dual-capital model concerns

Unpublished Level 2 text will be basis of model approvals, says FSA's Adams

UK insurers will be able to avoid running two capital models in 2013 if they can satisfy the FSA that their Solvency II internal models meet the current solvency requirements, the FSA has confirmed.

Companies will also need to base their internal model applications on the draft Level 2 text, rather than the standards already outlined by the FSA.

Julian Adams, head of insurance at the FSA, said the regulator would consider whether a company could utilise a single model when it reviewed a firm's