Insurance distribution

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As a general rule, law firms are not permitted to engage directly in insurance distribution activities, unless they are licensed by the FCA. This document focuses on law firms engaging in insurance distribution activities in the capacity of an ancillary insurance intermediary, which is permitted. This is most likely to be relevant to law firms engaging in conveyancing, personal injury or private client work.

What is insurance distribution?

Insurance distribution activities are, broadly:

  1. •

    advising on or proposing an insurance contract

  2. •

    carrying out other work in preparation for the conclusion of an insurance contract or concluding an insurance contract

  3. •

    assisting in the administration and performance of an insurance contract

  4. •

    providing insurance comparison information via website

For the detailed definitions, see Practice Note: Insurance distribution activities—law firms—What are insurance distribution activities?

Insurance distribution v introduction

The definition of insurance distribution does not include ‘introducing’.

This means you will not have to comply with the requirements of the insurance distribution regime if you merely introduce the client to an insurance provider—save that where you introduce the client to an insurance intermediary (ie broker), you

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