FSA broker visits will examine policy production and dispatch when they begin after January 2005.

Speaking at a conference FSA insurance sector leader David Strachan outlined areas the regulator will concentrate on.

He said that during its 'arrow visits' to brokers the FSA would look at policy production and dispatch, contract wordings, client money controls and reconciliations .

Strachan added that where relevant these themes would be important in establishing insurer compliance with the new FSA rules.

More detail about precisely what the FSA would be looking into will be available towards the end of the year, Strachan said.

An FSA spokesman said the arrow visits would also look at the quality of advice given to customers.

Strachan urged brokers and insurers to keep communication channels with the FSA open.

"I can't emphasise enough the importance of establishing an open relationship with us now, keeping us informed of the developments in your business and giving us early warning of any problems or difficulties you are having with compliance."

Switching his attention to insurers, Strachan added that the FSA planned to visit all general insurers by the end of 2006.

"In line with our risk-based approach, we will review those firms of highest impact or where the business or risk profile warrants early attention first."