Insurer fined £2.8m over 'high risk' commission driven staff

CICA sold accident and sickness insurance policies via self-employed agents. Between April 2008 and October 2010 it had 542,133 UK policyholders and received £47m in premiums for new business. The FSA found CICA had failed to properly manage its sales processes, claims handling and complaints handling and was in breach of FSA Principle 3, relating to management and control, and Principle 6, relating to customers' interests. CICA did not properly ensure its agents had the skills and knowledge to provide advice and focussed on the number rather than the ability of its recruits, the regu...