Britain’s regulator, the Financial Services Authority (FSA), is cracking down on illegal insurance brokers amid growing concern about unauthorised insurance businesses.

The FSA has regulated brokers selling general insurance products since January but the regulator now says it will visit all companies that registered or applied for authorisation but later withdrew, as well as ones that it has been alerted to by members of the industry and public.

A team of FSA staff has already visited more than 500 firms in Birmingham, Derby, Leicester and Nottingham and will visit other areas of the UK soon.

The FSA is also examining companies which sell insurance as a secondary activity, such as motor dealers and travel agents.