In the sphere of claims handling, insurers' suppliers will have to become FSA compliant. It is not that they must be directly regulated, but their clients, the insurers will require them to reach these standards.
Service providers will therefore need to provide potential clients with evidence of compliant systems if they hope to secure contracts. The FSA will be looking hard at the insurers' ability to comply and, in turn, insurers will be asking equally tough questions of their suppliers. As Graham Burgess says in this week's column, providing the evidence of compliant systems will be a challenging task for suppliers. And the cost of doing so should not be underestimated. Also this week, Steve White outlines what brokers will need to do to meet the FSA's demands and needs statement requirements.
Michael Faulkner
If you have received a 'minded to authorise' letter, email: michael.faulkner@instimes.co.uk
