European issue.

Whilst discussions currently concentrate on the suitability of the
IIB to administer the IBRA, we should not lose sight of the government's
objective which is for a self-regulatory regime to be operated by the
insurance industry. I think most would agree the current act had become
out of line with current market practice and conditions.

The government's move to self-regulation appears to be at variance with EC
law. Our company recently learned of an international motor manufacturer
who was fined

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