The FSA is clamping down on misleading insurance advertising.
Following a widespread review of motor, home and travel insurance advertisements, the regulator has warned the industry to ensure that consumers are eligible for claimed savings. It has contacted senior managers asking them to improve the quality of the advertising.
The FSA found that more than half of motor insurance advertisements with savings claims were either unclear or misleading. It also had the same concerns with a quarter of the home insurance advertisements. Travel insurance saving claims were generally of a higher standard than the others.
Vernon Everitt, FSA retail themes director, said: "Most people rely on some form of insurance to protect them and advertising is a major influence on what they choose to buy. So it must be clear, fair and not misleading, leaving people with a balanced picture of what's on offer.
“This work demonstrates that firms in the home, travel and car insurance markets must shape up and ensure that the claims they make don't mislead. We will be back in three months to assess progress and will then decide whether further regulatory action is needed."
The regulator will review insurance advertising in three months.
