Without efficient, orderly and clean characteristics, it is difficult to see how London can retain its pre-eminent reputation as the optimal platform of choice for wholesale and commercial insurance, claimed John Tiner, chief executive of the FSA at a recent Insurance Institute of London lecture.

“Without modernisation London's position as the place to do business is by no means assured,” said Tiner. Contract certainty and commission disclosure are key to the future of the London and British insurance market, said Tiner. He took the opportunity to announce at the lecture that “the time has come for us to take a more objective and forensic look at the possibility of mandating commission disclosure.”

He stated that “a more detailed exploration of the issues around commission disclosure will be highlighted as a priority for us in the FSA's business plan for 2007/8.” The plans will include an objective Market Failure Analysis and corresponding Cost Benefit Analysis, covering both transparency to the customer and to the market. Regulatory intervention will only be considered the best way forward, claimed Tiner, “if these initiatives are met and the market has still not come forward with any industry-led solutions.”

As regards contract certainty, Tiner claimed that on the whole the market has embraced the challenge of contract certainty, although he warned that “it would be disappointing to say the least if the market allowed complacency to creep in and so I would urge all of you in the market to continue to keep focused on getting across the finishing line. The job isn't finished in December and I want to see the residual tied up as soon as possible thereafter and for no back log to re-emerge.”