GENERAL INSURANCE STANDARDS COUNCIL PUBLISHES CONSULTATION DOCUMENT ON REGULATION OF GENERAL INSURANCE
The General Insurance Standards Council (GISC) today published its first consultation document on the proposed regime for regulating the conduct of business for general insurance.
The document explains how GISC's proposals have developed so far, and seeks views on them. It covers the following areas:
- Background and reasons for changing the system.
- What the new regime wants to achieve.
- Empowerment, and the importance of bringing all firms within the self-regulatory net.
- The structure of the GISC.
- Enforcement and sanctions.
- Possible content of the regime, including point of sale codes, financial and competency requirements.
- Timetable for transitional arrangements.
The document will be circulated to all sectors of the industry, as well as government and other regulators, consumer and public interest groups. Comments are requested by 31st January 1999.
To promote wide ranging and informed debate about the issues raised in the document, a series of half-day seminars are being held in London, Glasgow, Manchester, Birmingham and Bristol over the next three months. The seminars are open to anyone with an interest in how general insurance is presented to its customers.
Anthony Howland-Jackson, Chairman of the GISC Executive Committee, said:
"This consultation document tackles the key issues which need to be addressed to establish an effective, and workable regime. It has been developed by organisations representing the overwhelming majority of the general insurance market. This is the start of an ongoing process to ensure that all interested parties, from both within the industry and outside, have the opportunity to put forward their views on the future regime for sales of, and advice on, all general insurance business."
A Treasury official said:
"It is good that there has been concrete progress since Helen Liddell's announcement of 27 July in developing a new regime for general insurance non-statutory regulation. This consultation exercise is a welcome step and the Treasury hopes that it will draw responses from a wide range of interests."
Notes
- Copies of the consultation document are available on request from Carole Walker, Association of British Insurers (Tel: 020 7216 7526).
- The Executive Committee of GISC is chaired by Anthony Howland-Jackson, Chairman of Lloyd's Insurance Brokers' Committee. The Committee consists of Albert Mills (Chairman of the General Insurance Council, Association of British Insurers), Mike Slack (Chairman of the Association of Insurance Intermediaries and Brokers), Simon Bolam (Chairman of BIIBA), Tim Carroll (Chairman-designate of the International Underwriting Association) and Max Taylor (Chairman of Lloyd's).
- The key objectives of the new self-regulatory regime, announced on 14 September, are:
"To establish and enforce principles and rules designed to ensure that general insurance customers receive the appropriate degree of protection, taking account of the type of business and in particular the customer's knowledge and experience".
- Enquiries to:
Vic Rance 020 7216 7440
Malcolm Tarling 020 7216 7410
Jennifer Weller 020 73976 0222 (Pager: 04325 379214)
- For dates and details of the regional seminars contact Carole Walker, Association of British Insurers (Tel: 020 7216 7526)
- An ISDN line is available for broadcasts.