Furious brokers have made a group complaint to the FSA about reinsurer CX Re's "obstructive and cynical" claims payment policy.
The complaint to the FSA was made in late summer under the auspices of the London Market Brokers' Committee and the FSA is understood to have approached the company regarding the brokers' concerns.
But despite the FSA's intervention, the brokers are dismayed that the reinsurer does not appear to have responded to their complaints.
One fumed: "We're at the mercy of a company that has adopted a cynical, scorched earth policy of obstructing and delaying claims."
Another senior broking source added: "I'm not aware of anybody who is comfortable with CX Re's behaviour. The people at fault are at the run-off operation at CX Re, but we would like the FSA to do whatever it can to make them improve and I'm not aware of any visible signs of improvement."
CX Re was formerly the London reinsurance operation of CNA. It was put into run-off and sold last year to Tawa UK Ltd, a subsidiary of France's Artémis Group.
CX Re chief executive Philip Singer has refuted the claims: "We met with the major brokers in July and explained the situation. Once CNA Re UK went into run-off we adopted a new way of processing claims and there was a knee-jerk reaction from some of the brokers."