FSA simplifies insurance regulation
Published On 30 April 2007
The recent move by the Financial Services Authority to change the regulations which apply to the sale of some life, critical illness and income protection insurances has been welcomed by industry groups.Last week, the FSA revealed that it would simplify the regulations on these types of insurances when there is no investment in order to protect consumers.
This means that existing regulations will be simplified and should make it easier for people - particularly older members of society - to get access to insurance plans with life cover.
The Association of British Insurers (ABI) welcomed the move and the group's director of general insurance and health, Nick Starling, said: "This positive move by the FSA will benefit many customers, especially older people. We are pleased that it has listened to our arguments.
"People now live longer, have a longer working life and start families later. Rising house prices mean many have to spread their mortgage payments over a much longer term. For all these reasons, the need to have life cover at older ages is increasing."
Mr Starling added that previously it "could be difficult for older people to buy life cover alongside a product such as a mortgage because the adviser was not qualified to sell products under FSA investment rules".
Recently, the FSA criticised many companies which sold insurance products via cold calling. The regulator said that more needed to be done in this particular industry to make sure customers were treated fairly.
