Willis chairman pushes for global principles-based regulations

Joe Plumeri, chairman and CEO of Willis Group Holdings (NYSE: WSH), the global insurance broker, stressed the importance of embracing a principles-based rather than a rules-based approach not just to regulation, but to running the entire industry at the UKs Financial Services Authoritys Annua Insurance Sector Conference.
Principles are values you hold that are non-negotiable, Plumeri stressed.
Otherwise we spend more time mechanically following the rules by making sure the boxes are checked and the forms filled out and not really acting in the best interest of our clients.
Plumeri spoke about the principles driving Willis decision to abolish profit and volume based contingent commissions, and he also called for a consistent approach to regulation around the world affording clients the same level of industry service no matter where they are conducting business.
The outcome of a principles-based approach, practiced globally and with regulatory flexibility, will be that our clients have confidence and faith in the industry and that is a must for everyone involved, Plumeri said.
A similar push is being felt in Canada, where the Insurance Bureau of Canada is urging provincial regulators to embrace principles-based regulations.
So far it would appear that Ontarios financial services commission agrees that that may be the best approach going forward.