Insurers and drivers could be hit by changes in the motor insurance market, the FSA warned.
In its Financial Risks Outlook 2004, the UK's financial services regulator said there were indications th ...
Insurers and drivers could be hit by changes in the motor insurance market, the FSA warned.
In its Financial Risks Outlook 2004, the UK's financial services regulator said there were indications that some major reinsurance providers could soon cease to provide unlimited liability cover.
It said: "A reduction in motor reinsurance capacity could result in pricing increases, or direct insurers having to bear the unlimited liability component themselves."
Reinsurers' willingness to take on unlimited liability had decreased since the WTC attacks and the UK's Selby rail crash had demonstrated the potential for such coverage to result in very large claims.
