The FSA has issued a press release advising that in its view the insurance industry has met the challenge to achieve a solution to contract certainty in the UK. The FSA’s press notice follows a meeting that the FSA had with insurance industry leaders in which the industry reported that 90% of contracts in the subscription market and 88% of contracts in the non-subscription market are now achieving contract certainty.
Contract certainty will continue to be a supervisory priority for the FSA in 2007. The FSA will ask the market to focus its future efforts on reducing the number of contracts that do not meet the market's contract certainty standards. Where the FSA believes that firms have fallen behind the rest of the market it will consider regulatory action to address this.