The FSA has warned brokers and insurance companies to improve the standard of their policy documentation or face enforcement action.

In a "Dear ceo" letter sent out this week, the regulator said firms had failed to follow its requirements following its review of the appropriateness and clarity of significant or unusual exclusions or limitations in policy summaries.

The FSA said it found that in a number of cases, documents omitted one or more significant or unusual exclusions or limitations. It also said that documents suffered significant quality shortcomings, including a lack of all the necessary information.

The regualtor said firms should "consider whether [they] need to review [their] product disclosure documents for non-investment insurance contracts.

"If we find continued significant shortcomings in the follow up work, we will consider the use of enforcement action at that stage," it added.