The ABI and CILA have launched their joint claims protocol, the two organisations announced.
They said the broad content of the claims protocol had been discussed with the FSA, who had encouraged the development the protocols.
But they said the FSA has not endorsed the specifics of any particular agreement such as this.
The ABI has strongly recommended the adoption of the protocol by members within their supplier service contracts.
It said the protocol would aid the industry in the following ways:
· It draws out and helps common understanding of the requirements of regulation
· It will assist in avoiding a myriad of different interpretations of the requirements. It does not however reduce the right of individual insurers to seek broader contractual requirements
· It provides ABI members with some assurance that when appointing Loss Adjusters, they are aware of, and comply with, the protocol
· The CILA has undertaken to require members to comply and will act when any breaches are brought to their attention.
This protocol does not replace existing codes but is intended to support and compliment them, added the two organisations.
They also said the protocol could provide a good template for other supply services that insurers engage in.
Commenting on the launch, CILA president Andy King, said: “The driver for the discussions with the ABI was the large number of differing requests CILA members were receiving from insurers for information or for additions to services due to FSA Regulation.
“CILA approached the ABI and a joint committee was established to develop a common protocol of interpretation and behaviour under the ICOB rules. That Committee has done a fantastic job.
“At the same time, the CILA has reviewed and streamlined its disciplinary processes and is looking to change the basis of membership to ensure standards are maintained.
“Through these measures clients can be confident that CILA members are the professionals of choice to instruct on claims handling within the new regulated environment.
