Under-pricing was not sustainable, regulator told

A handful of London-based British rivals of Quinn Insurance had warned the Financial Services Authority (FSA) over a number of years that they believed Quinn was unsustainable, the FT reports.

They warned that no insurer could systematically charge premium rates that were often significantly lower than all its rivals over an extended period and remain viable.

Both the UK Financial Services Authority and the Irish Financial Regulator declined to comment, but regulators were aware of some industry concerns.

The FSA said that the home regulator for a foreign financial company operating in the UK was the lead regulator for prudential matters and that under European Union rules, a host country has only limited powers over a European institution approved by its home regulator.