US ratings agency Fitch has raised concerns about the financial health of 200 general insurers, which it claims have been placed in “higher risk” categories by the regulator, the Financial Services Authority.

Fitch said 25% of the country’s 900 insurers are the subject of “close and continuing dialogue” with the FSA. The writer of the report, Andrew Murray, said the insurers involved have not yet been informed of their new status.

The FSA, which took over insurance industry regulation a few months ago, is pursuing much the same course as Australia’s APRA in calling for stricter capital requirements for insurers.

The Guardian newspaper said the current rules under which UK insurers operate allows them to use “sophisticated financial engineering” to make their financial positions appear better than they actually are.