For the most part, the objectives of supervising to the highest international standards and supporting the development of a successful industry will be entirely consistent and mutually reinforcing. There may, however, be occasions when the two objectives either are or appear to be in conflict. If the regulators feel under pressure to facilitate commercial success in the short term, they may be tempted to compromise on regulatory standards. If, again, they are too zealous in the promotion of new products, there may again be temptations to compromise. Their impartiality as regulators may be, or appear to be, compromised.
Appearances are important as well as the reality.
Their first responsibility must be to protect the interests of customers and the Islands' wider reputations. Second, they need to be, and be seen to be, impartial. This is entirely consistent with supporting the industry's progress, facilitating the development of new products and effectively publicising the regulatory regime. The regulatory regimes need explicitly to recognise the diversity of insurance products and the differing requirements for regulation. The regulatory requirements for life assurance products, sold to the general public, are markedly greater than those for the captive insurance vehicles of large companies.