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At a press conference, the IMF said the financial services sector needs to be reformed on three levels, with Dominique Strauss-Kahn, the managing director of the IMF, saying "systemic risks" were one of them.
While a reform in the sector could improve the confidence of investors of the benefits in stock market trading, the Association of British Insurers (ABI) said not all financial services firms should be penalised.
"Any inclusion of insurers within the scope of levies designed to impact on banks is essentially inappropriate and not justified," said Kerrie Kelly, director-general of the ABI, adding: "Insurers were not a source of failure."
While the move to strengthen the financial services sector was welcomed, she said insurance companies' business models are not subject to the risks banks are.
Posted by Sara Secker
