An FSA survey has found that many insurance companies are not yet fully complying with its rules on the provision of disclosure documents to customers.

In a study of the content and format of more than 100 policy summaries and Key Facts documents for various types of general insurance, the FSA found examples of poor quality of style and presentation and a lack of required information, for example a constant omission of the cancellation period from policy summaries.

The survey also highlighted that significant and unusual exclusions were either omitted or not given due prominence, and the description of some products was frequently too complex to be meaningful to a customer.

Clive Briault, FSA managing director of retail markets, said: "Providing consumers with simple, clear and understandable information about products is a key part of our general insurance regime.

"It is true that the industry is still getting to grips with the new regime, but these findings are worrying and we are expecting to see a marked improvement over the coming period.

Briault said the survey findings, including examples of good and bad practice, would be fed back to firms. He added: "If it is found that some firms continue in these failings, appropriate action will be taken, including enforcement action if necessary."

A parallel FSA survey found that many small and medium sized insurance intermediaries are not complying fully with the rules relating to their provision of initial disclosure documents (IDDs) to customers.

It was found that 62% of IDDs reviewed did not comply fully with FSA requirements, with common errors such as omitting the FSA Keyfacts logo, making minor changes to the FSA prescribed wording, or including descriptions of services or information that the FSA does not require firms to provide.

Briault said: "Some [initial disclosure documents reviewed] contained errors that could potentially mislead customers."

"The survey indicates that some firms are having difficulty in understanding our disclosure requirements when preparing their documents. We will feed back the findings to the intermediary sector to help firms reach the required standards, and there will be a follow-up review early next year."