FSA Slams Insurance Documents Standards
Regulator criticises insurance documents as poorly presented and written, with significant exclusions left out or inadequately highlighted
19th October 2005
The Financial Services Authority (FSA), the UK finance regulator, has strongly criticised the insurance industry over the standard of its policy documentation.
General insurance came under FSA regulation in January this year, and in a subsequent review of 100 policy summaries and 'Key Facts' documents, 'worrying' levels of failures were found.
Many documents failed to include significant exclusions that could prevent people making a claim, or if included, they were not given sufficient prominence or explained with clarity.
Evidence was also found of policies being sold to people who were too old for their claims to be considered, or vital information such as details of cancellation periods being omitted.
The FSA has warned the industry that it will take action against companies who continue to supply inadequate documents to customers.
The Association of British Insurers acknowledged that the industry had faced 'challenges' in complying with the new regulations.
Read More: BBC : Insurers criticised over policies
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