The Association of British Insurers (ABI) has warned the new regulatory structure could lead to dual supervision for its members.
It has called for co-ordination between the new Prudential Regulation Authority and the Financial Conduct Authority to ensure minimal regulatory overlap for the insurance industry.
The trade body’s comments come in response to the Treasury’s consultation A New Approach to Financial Regulation.
Otto Thoresen, ABI director-general, says: “It is vital that the new Prudential Regulation Authority and Financial Conduct Authority do not duplicate activities.
“Without clear co-ordination and sharing of information, firms could suffer the unnecessary cost of having two overlapping regulators.
“To achieve the best outcomes for firms and consumers both the FCA and PRA must work in a co-ordinated, joined-up and transparent manner.”
He added: “If there is clarity about who is responsible for what, and everyone is aware of the rules and decision-making processes across the board, then understanding should increase and consumer detriment decrease.”