The GISC is in turmoil about how to regulate the selling of general insurance over the internet, an industry representative has claimed.

Speaking at a conference – Interactive Insurance – Biba chairman Mike Williams said: "The internet is a nightmare regulatory environment. I spent the whole of Friday (December 10) in a GISC working group looking at how to regulate the sale of general insurance over the net and we realised very, very quickly we had opened up a huge can of worms.

"I truly don't pretend to know the answers to the problem – internet regulation will be a nightmare."

Angela Darling, the GISC's head of policy, said three of the key areas the new body is addressing are the policyholders' right to confidentiality, the explanation of cover, and enabling customers to complain at any time about the service they receive from their virtual provider.