Biba has expressed serious concerns over a number of the proposals contained in the FSA's recently issued Quarterly Consultation Paper.
The paper is proposing a number of amendments to the Insurance: Conduct of Business (ICOB) rules, including removing the status disclosure requirements for insurers in relation to retail customers.
It also intends to remove the requirement for insurers to provide a demands and needs statement for non-advised sales to retail customers.
Biba's head of compliance and training, Steve White, said: "The FSA's original decision to subject direct insurers to the ICOB rules was made following consultation...we supported the original decision and are very disturbed by these new proposals.
"We believe there is no evidence whatsoever to suggest that the FSA's original views on customer protection and confusion were misplaced and, as a consequence, these proposals could very well conflict with the FSA's statutory obligations.”
Biba's chief executive, Eric Galbraith, said he believed the regulator would be better served by focusing its attention on ensuring that insurers comply with the customer classification.
He also said it should focus on the provision of concise policy summaries and renewal terms in sufficient time, so that intermediaries can comply with the 21-day rule.
Biba has urged its members to read the consultation paper and to reply to the FSA and Biba by the deadline of 7 December 2005.