Assisting in the administration and performance of insurance contracts
Assisting in the administration and performance of insurance contracts

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Assisting in the administration and performance of insurance contracts
  • Background to the regulation of assisting in the administration and performance of insurance contracts
  • What are the elements to assisting in the administration and performance of a contract of insurance?
  • Acting for, or on behalf of, a policyholder
  • Exclusions specifically applicable to the regulated activity

Background to the regulation of assisting in the administration and performance of insurance contracts

Under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), a person cannot carry out regulated activities in the UK unless that person is authorised or exempt. This is known as the general prohibition. For more information about the general prohibition and its territorial scope, see Practice Notes: The general prohibition and implications of its breach and Territorial scope of the general prohibition.

'Regulated activities' are defined as including specified activities carried on by way of business that relate to ‘specified investments’ or property of any kind to which the specified activity relates. ‘Specified’ for these purposes means specified by HM Treasury. The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) (RAO) sets out a number of activities and investments which are so specified. For further information on what constitutes regulated activities, see Practice Note: What are regulated activities? For more information about what 'by way of business' means in relation to insurance, see Practice Note: What does 'by way of business' mean?—Insurance distribution activity.

The regulated activity of assisting in the administration and performance of a contract of insurance is one of five insurance mediation activities that became regulated on 14 January 2005 as part of the UK implementation of