Insurance broking industry healthcheck: a bitter pill for welcome relief?

Insurance broking industry healthcheck: a bitter pill for welcome relief?

Conflicts of interest – often a tricky issue. Particularly so when trying to navigate the complex relationships between customers, brokers and insurers, where separate regulatory and common law duties apply. Potentially headache-inducing, even. The FCA’s head of General Insurance and Protection, Simon Green, has signalled that there might be scope for a new remedy ahead.

FCA focus on the intermediary market could eventually result in greater clarity for advisers and their clients, but may impact intermediary market activity in the short term while things are under review .

The underlying question is what does the future of insurance broking look like? Simon Green’s message to an industry audience was that ensuring insurance broking is supported by good regulation, and guaranteeing client confidence in the insurance market, must be in everyone’s interests.

What was the focus of the speech by Simon Green?

There were three strands to Mr Green’s message:

  1. restoring trust and confidence in the insurance sector
  2. re-evaluating how intermediaries do business in the context of the new regulatory landscape
  3. how the FCA could work with insurance intermediaries to deliver a market that works well in the interests of customers

Why do the FCA consider that there are trust issues in the insurance intermediary sector?

While insurance broking has not been specifically exposed to the numerous scandals that has beset the financial services sector in recent times (eg payment protection insurance an

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About the author:
Paul Estlin has over 15 years’ experience in the financial services regulatory arena and has worked in private practice, in house and at the regulator- at Addleshaw Goddard, Eversheds, Shoosmiths and Rosenblatt Solicitors, where Paul headed up the firm’s Financial Services Regulatory practice; in legal and compliance roles at Standard Bank and Barclays Wealth; and at the Financial Services Authority and, before that, the Personal Investment Authority.