Ashby, Simon2019-04-232019-04-2320110926-495710.1057/gpp.2011.10http://hdl.handle.net/20.500.12127/6246This paper investigates the causes of the banking crisis and the resulting lessons that need to be learned for insurance regulation. The paper argues that the banking crisis was predominantly caused by weaknesses in the management and regulation of banks, weaknesses that lead to problems such as flawed compensation schemes, poor risk management communication and an over-reliance on mathematical risk models. On the basis of these findings, doubts are expressed about the direction of certain insurance regulatory reforms—such as the focus on capital requirements and quantitative risk assessment (the so-called “Pillar I” of most reforms). It is also recommended that a more balanced approach to insurance regulation should be implemented, which places much greater emphasis on enhancing risk management guidance and supervisory tools (Pillar II) and improving disclosure rules (Pillar III).enInsurance RegulationSolvency RegimesFinancial CrisisRisk ManagementThe Geneva Papers on Risk and Insurance - Issues and Practice258194