FSA (Financial Services Authority) was set up in 1997. FSA is non governmental agency. It is responsible for the regulation of much of the UK financial services industry. The Financial Services Authority has covered other financial services such as savings, investments, and mortgages, but not insurance. From 14th January 2005, general insurance will be regulated by the Financial Services Authority. From the 14th January 2005, insurance companies are providing consumers with clear policy information. Such information includes key fact documents with setting premiums, maturity period of policy and exclusions of the policy.
The benefits of the regulations:
Regulations will maintain the effective and efficient financial service.
Insurance industry becoming a competitive, dynamic, and innovative market place by providing balance between regulations and customer protection.
The proper fee structure is designed due to regulations.
The companies do not face complicated administrative exercises.
Insurance is regulated by the individual states and each state regulates the insurance by their own insurance department.
The benefits of the regulations:
Regulations will maintain the effective and efficient financial service.
Insurance industry becoming a competitive, dynamic, and innovative market place by providing balance between regulations and customer protection.
The proper fee structure is designed due to regulations.
The companies do not face complicated administrative exercises.
Insurance is regulated by the individual states and each state regulates the insurance by their own insurance department.
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