Regulatory risk ignored by general insurance sector - survey

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Consultant Grant Thornton says a survey of 160 general insurance brokers, including 29 of the top 50 income earners, has found most are ignorant of the corporate and personal risks that regulation under the FSA will bring.

Underlining this view is the finding that 72% of respondents "failed to recognise key regulatory terminology", whilst four in ten of the top 50 brokers "had not budgeted how much preparations would cost". That is not to say respondents held much faith in the existing voluntary system overseen by the General Insurance Standards Council, as just 16% of those surveyed said the current regime was effective. Some 43% of firms said they probably did not comply with GISC requirements in any case. The risk to firms and individuals is they ignore the warning signs, and only learn too late o...

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