21-day renewals near

Minimum renewal periods of 21 days are a step closer after Biba and the ABI met to discuss service standards on 20 June.

Biba chief executive Mike Williams said timing of renewal information was top of the agenda. He said: "We reached a broad agreement on the way forward and we're pretty close to resolution of the whole thing."

A joint document is now being drafted and Williams said he hoped the standards would be released in the next month.

Representatives from the Office of Fair Trading (OFT), Department for Work and Pensions (DWP) and the FSA, which have taken a keen interest the industry's service to policyholders, were not present at the meeting.

"They expect the industry to go away and sort its own house out," Williams said.

But some brokers have expressed concerns about the enforceability of the standards without regulator involvement.

ABI head of general insurance John Parker said, by making the standards public, policyholders could make an informed decision about the service they could expect from both brokers and insurers.

"Part of the challenge is to produce something that helps reassure policyholders and improve standards in the market while not inhibiting competition," he said.

"Making those standards available in the public domain will really help with competitive pressure."

According to sources, the standards will include a provision that, if insurers fail to meet the minimum notice period for renewal terms, they will extend cover to ensure minimum notice is given.