The National Association for Banking and Insurance Customers (NABIC) has backed a set of complaints handling procedures that, it believes could save the insurance industry hundreds of millions of pounds.
The new guidelines have already been sent to every firm of solicitors in the country – with the backing of the Law Society. NABIC will now focus on distributing to the insurance intermediary market.
NABIC's backing comes after news that brokers could be struck by a huge £500 levy for every complaint that gets passed to the Insurance Ombudsman.
Stuart Cliffe, chief executive of NABIC, said: "It may offer an alternative, or something that runs in parallel with the £500 levy, helping to reduce the number of complaints, and therefore costs.
"The Law Society has sent a copy to every solicitor. There are a number of parallels between insurance and legal professions. This guide will help brokers."
