It is a burden for brokers to classify individuals purchasing 'mixed-use' policies as retail customers (Insurance Times 18 March). Mixed policies are those that cover the customer in both a private and business capacity. This would include driving instructors purchasing motor cover that also covers social and domestic use, and sole traders buying insurance to cover their business and personal needs.

The FSA's approach is reasonable because, despite the commercial element to the policy, individuals purchasing personal insurances should have the additional protection afforded to a retail customer.

Brokers face the problem of reclassifying customers. Many mixed-use customers are currently classified as commercial clients. Brokers will have to go through their records and make the necessary adjustments to ensure the appropriate procedures are in operation. Clients may also need to be transferred from teams dealing with commercial client to those with responsibility for retail clients.

The issue of mixed business demonstrates that brokers must not lose sight of the more mundane aspects of the rules. The debate around topics such as risk transfer must not obscure the fact that other aspects of the rules require careful consideration.

Michael Faulkner