INSURERS WELCOME REGULATION CHANGE FOR PROTECTION PRODUCTS

The UK insurance industry has welcomed a decision by the Financial Services Authority to change its regulations in the sale of life, critical illness and income protection insurance. The Association of British Insurers, which has lobbied for the change, said such protection products where there is no investment component can now be sold in compliance with standard insurance rules, rather than having to adhere to more complex investment rules. Long term care insurance, however, will remain within the investment regulations.