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News - Insurance regulation costs £400m

Posted by b2211 on December 5th, 2007

Finance and insurance training of the general insurance industry, introduced last year, is costing 400m a year, the Association of British Insurers (ABI) has said.


The body said its members were having to pass on these costs to consumers in the form of higher premiums.


The ABI added that consumers now felt “bombarded” with reams of regulatory information when buying insurance.


The Car insurance finance Services Finance insurance statistical tool (FSA) is reviewing how effective its regulation of insurance has been.


“Many customers feel bombarded with information they do not want,” Stephen Hadrill, ABI director general, said.


“That deters them from car insurance finance out the best deal. Customers need principles-based regulation to ensure a finance insurance personal quote market that delivers a fair deal,” he added.


The FSA took over the regulation of general insurance in January 2005.



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