FSA regulation of the sale of general insurance products will build on the industry's existing commitment to high standards of customer service and protection, the ABI said today
While self-regulation worked well, the ABI said the industry must be committed to making the new system a success.
new rules replace the industry's self-regulatory regime, which was overseen by the General Insurance Standards Council (GISC).
ABI's general insurance director Nick Starling said: “Competition is the best form of consumer protection.
“It is essential that the new rules do not inhibit innovation. Regulation of sales of general insurance must be proportionate and risk-based. Excessive compliance costs could impact on insurance costs, which would hit consumers”.
