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March 9, 2008

News - Insurance regulation costs £400m

Filed under: Finance insurance — taborcade @ 7:47 am
Finance home insurance personal tesco of the general insurance industry, introduced last year, is costing 400m a year, the Association of British Insurers (ABI) has said.


The body said its members were having to pass on these costs to consumers in the form of higher premiums.


The ABI added that consumers now felt “bombarded” with reams of auto finance insurance information when buying insurance.


The Financial Services Zuerich insurance finance
(FSA) is reviewing how effective its regulation of insurance has been.


“Many customers feel bombarded with information they do not want,” Stephen Hadrill, ABI director general, said.


“That deters them from insurance premium finance
out the best deal. Customers need principles-based regulation to ensure a auto car finance insurance rate
market that delivers a fair deal,” he added.


The FSA took over the regulation of general insurance in January 2005.


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