News - Insurance regulation costs £400m
of the general insurance industry, introduced last year, is costing 400m a year, the 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 information when buying insurance.
The Financial Services Authority (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 searching out the best deal. Customers need principles-based regulation to ensure a market that delivers a fair deal,” he added.
The FSA took over the regulation of general insurance in January 2005.
Read source of it on the site