Previous concerns over insurers outside the EU have 'been addressed'

The FSA no longer has concerns over the solvency of offshore insurance companies, it said this week.

Recent reports had suggested that the regulator was in discussions with a number of foreign domiciled insurers and their home-state regulators over solvency issues.

The FSA admitted this week that there had been concerns over a "few" insurers in the European Economic Area (EEA) outside the European Union but added the issues had "been addressed".

A spokeswoman for the FSA would not comment on action taken or give further details of the companies concerned. "We are not aware of any firms who have had their authorisation withdrawn by the home state regulator," the spokeswoman said.

Home state regulators have responsibility for supervising the solvency of insurers which passport into the UK. The FSA will notify the home regulator if it has concerns over the solvency of a foreign insurer.

According to reports the Icelandic regulator, the FME, has been supervising the activities of two insurers that had failed to meet its solvency requirements.

At the start of 2006 a total of 12 insurers were authorised to carry out insurance activities in Iceland.

Iceland, Liechtenstein and Norway are members of the EEA but not the EU.