| Journal: TWUK | Section: |
| Title: | Issue Date: 17/07/00 |
| Author: | Page Number: 52 |
| Copyright: Other |
General insurance standards council
Intermediaries voice concern at appointed agents’ scheme
Agreement will shift responsibility away from GISC
TRAVEL insurance intermediaries are concerned about a new ruling from the General Insurance Standards Council that will allow them to take responsibility for an agent’s conduct.The clause allowing an appointed agent agreement was an unexpected addition to the rule book and means agents will not have to join the GISC even if it gets mandatory powers.
However, several intermediaries are unhappy at the idea of being responsible if an agent breaks the rules.
Ketteridge general sales manager Doug Weston said:”Any company that goes down that avenue will have to ensure it has a tight contract with its agents that makes it clear they must abide by the GISC rules.”
He added that agents change intermediaries regularly to get a better deal and would not want to sign a long-term contract, although that is what the intermediary would want if it is to invest in that agent.
Devitt Insurance Services divisional director and head of travel products Robert Smith said he would have to be satisfied the agents were able to comply with GISC requirements.
“The agreement would have to reflect the responsibility we are taking on,” he added. “It would be better if agents had to join GISC.
“Its aim is to protect the consumer by improving the way insurance is sold. Allowing brokers to take responsibility for agents does nothing to achieve that.”
Hamilton Barr sales director Michael Pettifer said he was not happy with the idea of signing a travel agent agreement, but said he would be left with no choice if he wants to sell though the trade.
“But travel agents will either have to behave as if they were a member of GISC or stop selling insurance,” he added.
Euclidian Risk Management director Steve King said he would be prepared to take responsibility for some agents, but warned the need for training could impact on the cost of the product.
Best behaviour: intermediaries will be held responsible if an agent breaks the rules