Market dynamics for triple-B rated paper could be impacted by the new streamlined risk-based capital regime for insurance companies released by the U.K. Financial Service Authority (FSA).

According to press statement released by the FSA earlier this month, the new Policy Statement, PS04/16, reports on the main issues arising from Consultation Paper 190 (enhanced capital requirements and individual capital assessments for non-life insurers), Consultation Paper 195 (enhanced capital requirements and individual capital assessments for life insurers) and the audit and reviewing actuary proposals in Consultation Paper 202 (insurance regulatory reporting - changes to the publicly available annual return for insurers). The FSA published the associated rules and guidance, incorporated under a lengthy 300-plus-word document that industry sources said has just begun to be broached by the industry.

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