Insurance companies have been urged to develop sound business continuity plans.
FSA managing director Michael Foot told delegates at the Annual Conference for Business Continuity and Disaster Recovery, that firms should make arrangements, "to help them maintain the continuity of their businesses in the event of an interruption."
However he said insurers would be encouraged to take the lead in the process.
He said: "We are not in the business of being prescriptive or requiring back up sites to be manned on a more or less continuous basis. We will be confirming our proportionate approach when we publish our response to the CP 142 consultation in a few weeks time."
