Responding to today’s announcements by Ruth Kelly, Economic Secretary, Mary Francis, Director General of the ABI said:

"Since GISC was established and welcomed by the Government, the European Union has introduced draft regulation requiring general insurance brokers to be regulated by a statutory body. That is the main reason for this switch to FSA regulation.

The ABI has argued strongly in favour of a continuing role for the GISC, and we regret that this change is felt to be necessary. But the industry will co-operate with the Government and the FSA to ensure that red tape is cut further and that customer confidence is maintained through a smooth transition period.

We are pleased that the Treasury has recognised that GISC has achieved a great deal, and that due credit will be given to companies who are members of GISC before the new arrangements come into effect.

During the transition period the industry will maintain current levels of consumer protection through GISC. This will ensure that the new arrangements are built on firm foundations and good practice.

There remain many questions to be resolved about the regulatory regime going forward. One point however is clear: while the new arrangements are being decided, the industry must and will continue to work through GISC to maintain proper customer protection and to ensure that membership of GISC is acknowledged by the new regime.’’

Notes

Enquiries to: Malcolm Tarling - 020 7216 7410 (mobile 07776 147667)
Alan Leaman 0207 216 7440 (mobile: 07957 482330)