FSA check on London market will measure reform progress
The FSA is to begin a review of the London market's efforts to achieve contract certainty in January.
Speaking to brokers and insurers, FSA head of wholesale insurance Julian Adams said this would be the industry's first "real test" of its progress.
He said: "We recognise that the year-end is a busy time as everyone is in the full swing of the January renewal season, but at the same time this will make it a true test of the extent to which practical change is taking place."
Adams said the obligation to achieve contract certainty was of "equal importance" to insurers and brokers, and that the market must show support for contract certainty through cultural change.
"We have demonstrated we can work together to agree some of the processes and principles," he said. "But we now need to agree and achieve the necessary behavioural change, so that acts follow good intentions."
Client money review postponed
The FSA has delayed its review of client money handling until early next year.
Andrew Honey, head of insurance at the FSA's small firms division, said the review, originally scheduled to begin earlier this year, had been postponed in favour of work on claims.
He told Insurance Times: "We've effectively swapped client money in the retail sector for [the claims sector review] because we felt that was a more significant issue."
Honey said the claims review would address customer service and complaints.
