Insurance accountant Moore Stephens said FSA regulations would make the UK less attractive to global insurers and threaten its position as global insurance leader.

The company said the in the modern global economy businesses can afford to be choosy about where they are established.

It also said the FSA set the UK ahead of Europe in regulation terms and warned there could be further implications for the industry.

Insurance partner Michael Butler said: "In the UK, the FSA is seen as being a step ahead of the regulators in the rest of Europe. Now, more than ever before, the message for insurance companies is: if you are going to do it, make sure you do it properly."