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Consumers are being advised that buying insurance on the phone could
take longer next year due to regulations introduced by the Financial Services
Authority (FSA).
Financial intermediary Admiral insurance will be one of the many companies
affected by new rules coming into force on the 14th January 2005 to regulate
general insurance sales and administration. It is advising customers in
advance of the changes so they can be prepared for longer phone calls.
The FSA is an independent non-governmental body, which regulates the
UK's financial services. It is overseeing the new compulsory regulatory
scheme, to ensure customers know exactly what they are buying. The regulations
will protect all consumers against mis-information or the mis-selling
of products.
The changes will have significant implications for financial companies
including direct insurers, insurance brokers and mortgage lenders.
The FSA aims to promote public understanding of financial services, to
protect consumers and to fight financial crime. The new regulations mean
that companies like Admiral will have a duty to clearly explain to customers
the following information: full details of the product on offer and its
cost; details of the underwriter; the benefit of the product and any exclusions
to the product.
Jane Stone, Admiral's managing director, said, "Although the new
rules mean phone calls will take a few minutes longer, they will benefit
consumers. They will now know exactly what they are getting, and will
not be subject to hidden costs."
Admiral is fully prepared for these changes. It has already adopted the
new rules to ensure their staff and customers are familiar with the new
procedures before they become law in 10 days time.
Jane Stone continued, "We support the FSA's aims. While the new
regulations mean that buying car insurance is likely to take longer, we
would ask customers to be patient and remember it's for their benefit.
Our advice would be not to be put off, and to shop around. It's still
the best way to save money."
Issue date: 04-01-05
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