Over two-thirds of compliance professionals believe that insurer's are not inspected often enough by the FSA, according to outsourcing firm Hunstwood.
Announcing the results of its compliance study, the survey suggested the FSA may be failing to enhance consumer protection.
The Huntswood survey also highlighted a lack of awareness at director level. It found that despite directors being made liable in the event of a regulatory breach, 79% of professionals believe directors are not prepared for their responsibilities.
Huntswood chief executive David Brownlow ,said: "The new regime is severely compromised when, even after a year, senior management still does not understand its responsibilities.
"Financial services companies must take urgent action to educate their directors and put in place the procedures and reporting mechanisms they need to fulfil their responsibilities.
"Otherwise, consumers are at risk, and so are directors, who run the risk of hefty fines in the event of regulatory breach."
