Motor insurance giant Highway made the headlines when it was forced to pull the plug on its new motor business or risk running foul of the Financial Services Authority. The news came just a week after the insurer revealed it was "switching off" new motor business from its 30 largest broker clients.

Last year Highway had a net premium capacity of £265m and capacity for this year was set to increase to £325m.

Under FSA rules insurers have to inform the regulator when they have written more business than expected. The FSA could then permit insurers to take on extra business.