The FSA has put on hold any regulatory intervention to ensure insurers and brokers are fully contract certain.
It has been two years since the regulator issued a warning to the market that it would act if the industry failed to on contract certainty.
In today's ‘Dear CEO' letter, insurance sector leader, Sarah Wilson, writes: “Our current high-level assessment, which we will review again in January is that enough progress has been made to keep regulatory intervention on hold.”
She added: “However, there are areas where more work is needed to ensure that the market led solution is successful and continues to be beyond 2007.”
In the letter Wilson details what the regulator wishes to see from the industry: “We are concerned that some parts of the market are less engaged than other, believing that contract certainty does not apply to them.”
She warned that some non-subscription brokers were falling behind in the area and would be visited by the FSA which would examine broker records to monitor progress.
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