Pricewaterhousecoopers is believed to be disappointed with the performance of its contract for monitoring intermediary members of the Insurance Standards Council (GISC).

A source close to the insurance industry regulator has disclosed that PWC calculated the contract would yield revenues of £5m in the first year, with a profit of around £1.5m.

But since GISC's total membership only numbers 380 at present, the revenue stream from monitoring intermediary members is likely to fall far short of PWC's projections.

A spokeswoman for the GISC said: “Remuneration for the PWC monitoring contract is related closely to the performance of regulatory activity. There is no minimum payment for the agreement.” She stressed that payments for monitoring would increase as GISC membership grew.