Two thirds of insurance firms do not consider the Financial FSA's proposals on capital adequacy to be a priority. That's according to CMG.
The survey also found that 12% did not have a dedicated regulation officer in place to deal with the proposals.
Of particluar concern to CMG was that just 27% were confident that their satisfy current FSA proposals. A further 40% said that significant work still needed to be done before they could comply with new FSA rules.
Adrian Gray, managing director at CMG said: "The insurance sector has been put off by the fact that Basel II keeps being pushed back. This eliminates the impetus for changes in organisations. However, with the deadline fast approaching organisations need to act fast.
"The research shows that most organisations have their work cut out. The earlier they begin preparations for the inevitable regulations, the more cost-effective and less stressful implementation will be."
