The guidelines were drawn up by the Association of British Insurers in consultation with the Financial Ombudsman Service.
Brown says: “We are now dealing with a claims’ drift. What we originally thought was deliberate non-disclosure became reckless, now reckless becomes innocent. The whole thing has softened back.”
Brown says he supports the ABI and Financial Ombudsman Service in trying to achieve a more harmonised approach in how companies deal with non-disclosure but some firms are unhappy with the new stance.
An FOS spokesman says: “In January, the ABI published guidance following consultation with the ombudsman service which reflects the way in which we and a number of the major insurers already resolved disputes. If a firm has a complaint and they are not sure how to resolve it, they can contact our technical advice desk.”
ABI spokesman Jon French says: “The guidance was drawn up in very close consultation with the industry and the industry as far as we are concerned is behind it.