The Financial Services Authority is ensuring that insurance providers are staying within the limits of the law by enforcing new regulations.
All general insurance companies are expected to comply with new regulations that came into force in January.
The Financial Services Authority is now responsible for tracking down the general insurance firms that conduct their business outside the set rules.
According to the managing director of retail markets at the Financial Services Authority, Clive Briault, it is a priority for the regulator to visit general insurance companies in order to ensure they are abiding by the rules.
"This is vital to protecting consumers since they do not have access to statutory redress and compensation if they deal with unauthorised firms," he explained.
"By cleaning up the industry we are levelling the playing field for legitimate authorised firms. Firms that are conducting general insurance business illegally should act now and either become authorised or stop carrying out that side of their business."
The Financial Services Authority has also made it clear that it would not put general insurance firms out of business without good cause and reason.
General insurance companies that have breached regulations inadvertently would have the option to get the necessary authorisation to make them compliant with the regulations.
Mr Briault has urged consumers that they should also "check the status of the firm they are dealing with before conducting business with them".
Financial Services Authority checks general insurance firms
Financial Services > Car lnsurance > News
Financial Services Authority checks general insurance firms
Fri, 08 Jul 2005
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