The UK FSA published a Consultation Paper on Tracing Employers’ Liability Insurers, (http://www.fsa.gov.uk/pubs/cp/cp10_13.pdf) published on 15 June 2010. Subject to the results of the consultation, FSA propose to add these new requirements to their general good provisions. The consultation closes on 14 September 2010 and it is expected that any changes will be introduced later on this year.

The consultation makes proposals in respect of UK registered insurers and EEA insurers conducting business in the UK on a cross border basis under freedom of services and/or through UK branches. The proposals provide that all general insurers are to notify the UK FSA if they have potential liability for UK commercial lines employers’ liability business and if they do, they must make tracing information available on the company’s websites or through a tracing office meeting certain conditions. The aim is to improve consumer protection, as according to the FSA, there are an unacceptable large number of claimants who are unable to obtain compensation to which they are entitled for work related diseases such as those arising from asbestos exposure.

This Consultation Paper is of direct interest to those insurers that are carrying on business on a cross border basis in the UK and providing employers’ liability insurance cover. Other insurers may find this useful should they have future plans to carry on business to provide employers’ liability insurance on a cross border basis in the UK.

Should you have any queries regarding the above, please do not hesitate to contact the Insurance and Pensions Supervision Unit e-mail: [email protected] .