Insurers will face a Government review into strenghtening their adminstration processes to ensure policyholders get fair treatment should a provider go into administration.
In the Budget, Darling praised the insurance industry and the UK's prudential regulatory regime for insurers' ability to "stand up well during the global financial crisis". But he says in the light of the Government's review of other insolvency regimes, the Government is "seeking to refine the administration regime for insurers". The aim is to ensure continuity of payments and protection for policyholders, should an insurer go into administration. Proposed changes also include legislation to ensure that if the Financial Services Compensation Scheme (FSCS) takes action to protect po...
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