Watchdog warns over cold calling

Insurers have been told to improve their standard of cold calling when selling general cover over the phone - to ensure they are treating customers fairly.

The warning came from the Financial Services Authority (FSA), which found that while sales were "generally acceptable" where the customer called the firm was, the quality of sales made through unsolicited calls to customers was "poor".

This followed a review of 43 firms by the City watchdog. "The quality of cold calling in general insurance sales was disappointing," said Vernon Everitt from the FSA. "Consumers were pressurised and the bene-fits of the product were sometimes exaggerated."

He said he expected "significant improvement".

"Swift action has been taken to deliver those improvements at the firms we visited, and we are following up with other firms which use cold calling."

He added: "The bottom line is that firms must never pressurise consumers in to making a rushed decision and must always clearly spell out the nature and limitations of the products."

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