Increase in insurers outsourcing despite FSA concerns

It also suggested that longer-term arrangements are still seen as an important contribution to cost-saving, despite the FSA's systems and controls rules, and despite the impact of VAT changes over the next three to five years as a result of the European Commission proposals to modernise the VAT regime for insurance.

The survey revealed that 82% of respondents did not find regulations on outsourcing unduly restrictive, with half of these respondents finding the level of regulation 'about right'

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