The Association of British Insurers (ABI) claims that regulation of the UK general insurance industry has proven more of a hindrance than a help to consumers and has resulted in higher priced insurance packages.
The body has welcomed the FSA’s plan to review the effectiveness. In its report, ‘The Regulation of General Insurance’, the ABI claims many customers feel the regulated sales process is too long and contains unnecessary information. In consequence, they are deterred from shopping around.
Stephen Haddrill, the ABI’s director general, said: The ABI welcomes the FSA’s intention to review general insurance regulation. Many customers feel they are being bombarded with information they don’t want. That deters them from searching out the best deal.