Article date: 13 December 2004
Intermediaries and their clients in freightforwarding and household removal need to change the way they supplyinsurance before FSA regulations take effect in January 2005– or face being unable to offer cover.
Norwich Union – the first major marineinsurer to make its position clear in this sector - is recommendingthat forwarders and removers become Introducer AppointedRepresentatives of their intermediary in order to meet the demandsof the FSA.
David Shaw, development and claims manager inNorwich Union’s Marine Team, says: "If intermediaries want tocontinue selling this class of insurance, and their clients want tocontinue offering a service, they cannot continue to operate in thesame way.
"When we send out Notices of Cancellation on ourForwarder and Remover Open Cover policies in the near future, we donot want operators to be without alternative arrangements."
Mr Shaw explains: "As Introducer AppointedRepresentatives, firms will be able to pass on anintermediary’s details to their customers, but not giveadvice. This removes the regulatory pressure on intermediaries andinsurers; the former need only to ensure that their clients aredoing nothing more than acting as introducers."
Norwich Union has launched a web-based service– The CargO System - to help intermediaries with theadministrative tasks of dealing with the cover, such as providingquotations, issuing insurance certificates and premium debitnotes.
For more information intermediaries should contact their localNorwich Union Marine Centre.
For further information, pleasecontact:
Jon Clements at Staniforth on 0161 2740100/07989 414486 or David Ross at Norwich Union on 08703 66 6865/07786 526350.
Notes to editors
This item represents NorwichUnion’s interpretation of the requirements of the FinancialServices and Markets Act 2000 and the Financial Services AuthorityHandbook for Rules and Guidance. It is disclosed for informationpurposes only as should not be relied upon by any third party forFSA compliance purposes or otherwise. Norwich Union accepts noliability or responsibility for any regulatory sanction suffered byany third party arising from purported reliance on the content ofthis item.
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