FSA & Motor Insurance

The FSA is the Financial Services Authority which already regulates mortgage and life insurance sales. As from 15/1/05 general insurance, including motor policies, will come under its remit.

The aim of the FSA's regulation is to protect consumers by monitoring areas such as a companys financial stability and the suitability and competence of its staff. Guidelines are in place to ensure maximum disclosure to consumers and transparency regarding the cost and cover provided by recommended policies.

At Insureyourmotor.com we work hard to obtain the best cover and premium for our customers and ensure that we are providing them with the most suitable policy for their needs. We will explain any significant or unusual limitations or exclusions in plain English, and provide a written policy summary along with a breakdown of the premium. Our terms and conditions are fully explained on our websites, which are tailored to meet the needs of individual markets.

Compliance with the FSA ensures that we meet strict requirements regarding solvency and the handling of clients' money, providing security for our customers. We exceed the limits of Professional Indemnity Insurance that we are required to have in place, offering further peace of mind for consumers. The FSA requires half yearly financial returns to be completed to guarantee financial stability.

Staff are required to be trained and assessed as competent in the roles which they perform and are fully supervised and monitored whilst training. They are assessed on an ongoing basis to ensure that high levels of customer service and professionalism continue to be met. Senior staff undergo extra security checks to ensure they are appropriate individuals to exercise a duty of care towards our customers.

Areas regarding the systems and control of the company are monitored and reviewed monthly by the Board who are all registered as senior managers under the FSAs Approved Persons regime. These individuals have been cleared by the FSA as being suitable for the role of company director and carry the responsibility for the ethics and integrity of the organisation.

The impact on motor insurance of the FSA may well be to consolidate the market into larger, established intermediaries who are able to conform with the FSAs demanding requirements. Many smaller establishments may feel that the expense of compliance cannot be justified and become Appointed Representatives for a larger agent, thus transferring the burden of regulation to the Principal. For the consumer this provides security and peace of mind that by 15/1/05 all firms trading in general insurance must be regulated, with the reassurance that this brings. We at Insureyourmotor.com are delighted to be able to offer a professional service to our customers and look forward to working within the remit of the Financial Services Authority by January 2005.