Simon Bolam broke ranks from the General Insurance Standards Council (GISC) board this week and called for the Association of British Insurers (ABI) to ditch its code of claims handling.

Last week Insurance Times revealed that the ABI and the GISC were on a collision course because both bodies were lauching independent codes.

Speaking to Insurance Times, ex-British Insurance Brokers Association chairman Bolam says the ABI actions will muddy the water.

He said: “I don't think it [the code] should fall under the ABI. I believe claims handling forms a part of the regulatory system. It is an ongoing part of the sales process. The GISC monitors the subsequent transactions that follow the sale of a policy and I believe that should include claims.

“I believe that once the GISC gets empowerment and has resolved its need to get OFT clearance and it is seen as the established regulator, I can see no reason why it should not include claims.

“I think the two sets of claims have to become one and if one group is going to create these standards, then it needs to be an independent regulator, rather than the ABI which has its own agenda.”