Insurance Regulation Changes

Changes to the regulation of the insurance industry

Since 14 January 2005 the Financial Services Authority (FSA) has been regulating the general insurance industry. At CORGI Insurance Services, we view regulation as a positive step in continuing to provide a high level of service and delivering the open and honest communication that clients expect.

Why the regulation route

The FSA has four objectives and these are:

• To maintain confidence in the UK financial system.
• To promote public understanding of the financial system.
• To secure the right degree of protection for consumers.
• To help to reduce financial crime.

With the FSA regulation there is no blueprint to follow. This means that you will find that what is done, and how the rules are implemented, may differ with the insurance provider you choose. Some will have chosen to adopt the rules and review their procedures in a limited manner, others will have really embraced the regulation and made many changes to the way in which they conduct their business with you.

Regulation – safeguarding you, the client

You may ask why these changes needed to occur and the simple answer is that regulation has been introduced to safeguard you… the client. Since January 2005 you may have seen a number of benefits in your dealings with your insurance provider.

You will almost certainly have noticed changes to the documentation you receive and it is more than likely that you will have noticed receiving more documentation. For example, you should now be receiving extra information about the products that are available for you, before you decide to proceed. In many instances this comes in the form of a ‘Statement of Facts’ document or an ‘Insurance Review’ form – again, this will vary with the insurance provider you choose. These documents should broadly detail the extent of cover the insurance provider is offering and give details of any major exclusions or obligations.

You will also be made aware of the way in which the insurance provider will conduct their business with you, so that you know what to expect from the outset. If you are already a CORGI Insurance Services client you will have received our ‘Terms of Business Agreement’. This document details information about our regulatory status and the general terms of business for the services we provide. You will be able to find out how to obtain details of our complaints procedure and, where applicable, your rights to compensation in the event of any problem.

For further information about the FSA and to find out if your provider is registered to conduct business visit www.fsa.gov.uk.

As CORGI Insurance Services is a part of Aon Limited, one of the UK’s largest insurance broking organisations, we have embraced regulation and it is firmly at the core of everything we do. We are here to help, so if you have any questions relating to your insurance or would like to receive your no obligation insurance quotation please contact the team on 08457 58 51 60.