I read with interest your article on claims regulation ('The watchdog barks', 23 November).

However, it is not the case that FSA regulation only now applies to insurers handling third party claims. It has always done so. When we highlighted this to the Government, they agreed that this provided sufficient regulation of insurers' dealing with third-party claims.

The FSA too has confirmed that they had actively considered this area and decided that the current insurance regulatory regime is entirely appropriate as it currently stands. Indeed, the FSA's general direction is to reduce unnecessary regulatory burdens that may be in place, rather than increase them. This is a trend we welcome and will be beneficial to consumers.

By contrast, it is all too apparent that the claims management company sector has been unregulated for far too long. The resulting abuses were clearly highlighted by the Government's Better Regulation task force over two years ago.

We welcome the new regulations that are being introduced to prevent these abuses and protect claimants and wish Mark Boleat every success.

In parallel, insurers will continue to expand their offerings to third-party claimants to enable them to bring claims direct without forcing them to have to approach via claims management companies or enter the overly complex and inefficient legal system.

This will help deliver the Government's and FSA's aim for swift and fair care and compensation being provided to legitimate claimants.

Justin Jacobs, Head of Liability, Motor and Risk Pricing, Association of British Insurers