Intermediaries and their clients in freight forwarding and household removal need to change the way they supply insurance before FSA regulations take effect in January 2005 – or face being unable to offer cover.
Intermediaries and their clients in freight forwarding and household removal need to change the way they supply insurance before FSA regulations take effect in January 2005 – or face being unable to offer cover.
Norwich Union – the first major marine insurer to make its position clear in this sector - is recommending that forwarders and removers become Introducer Appointed Representatives of their intermediary in order to meet the demands of the FSA.
David Shaw, development and claims manager in Norwich Union’s Marine Team, says: "If intermediaries want to continue selling this class of insurance, and their clients want to continue offering a service, they cannot continue to operate in the same way.
"When we send out Notices of Cancellation on our Forwarder and Remover Open Cover policies in the near future, we do not want operators to be without alternative arrangements."
Mr Shaw explains: "As Introducer Appointed Representatives, firms will be able to pass on an intermediary’s details to their customers, but not give advice. This removes the regulatory pressure on intermediaries and insurers; the former need only to ensure that their clients are doing nothing more than acting as introducers."
Norwich Union has launched a web-based service – The CargO System - to help intermediaries with the administrative tasks of dealing with the cover, such as providing quotations, issuing insurance certificates and premium debit notes.
For more information intermediaries should contact their local Norwich Union Marine Centre.
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For further information, please contact:
Jon Clements at Staniforth on 0161 274 0100/07989 414486 or David Ross at Norwich Union on 08703 66 68 65/07786 526350.
Notes to editors
This item represents Norwich Union’s interpretation of the requirements of the Financial Services and Markets Act 2000 and the Financial Services Authority Handbook for Rules and Guidance. It is disclosed for information purposes only as should not be relied upon by any third party for FSA compliance purposes or otherwise. Norwich Union accepts no liability or responsibility for any regulatory sanction suffered by any third party arising from purported reliance on the content of this item.
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