BUYERS OF insurance should be offered more protection under new rules on the selling of general insurance from Jan 14 next year.
Under the Financial Services Authority’s rules, anyone selling or advising on insurance from that date must be FSA-registered and must inform the customer of this. Buyers of insurance must also be automatically given a clear statement of why a policy they are being sold is suitable for their needs.
“There must also be a statement of price, making it clear how much it is costing and separating out any fees or administrative charges the seller is receiving as a result of the deal,” says Rachel Kelsall, general insurance compliance manager with the NFU Mutual.
Other new rules mean that:
All of these should be voluntarily provided to the customer; he or she should not have to ask for them.
The new rules include consultants who advise on insurance, many of whom have chosen to register already, and retail outlets which sell insurance alongside their products, such as motor traders, machinery dealers and land agents.