Alan Gavaghan, chairman of the Insurance Brokers Registration Council, has thrown his full support behind the new regulator, the General Insurance Standards Council.
Gavaghan spoke at the GISC official launch on Monday. He said: “Following the decision to repeal the IBRA, I see the GISC as the only real alternative. I see the GISC as an appropriate market response to the Government's wish to see proper self-regulation. I personally wish well for the GISC into the future. I am sure this launch is the start of a new phase in the regulation of the general insurance industry.”
And Gavaghan made a sideswipe at those emotionally clinging to the IBRC regime, comparing it with past changes that provoked industry uproar. “I remember the rage when the corporation of insurance brokers opened its doors to other trade bodies. Few remember those emotions now and I feel sure the same will be true of GISC,” he said.
Also at the launch, Treasury financial secretary Stephen Timms praised the GISC for achieving so much so quickly. “No-one should doubt that the Government and public want to see high standards of professional conduct among those who distribute general insurance products. Businesses as well as customers stand to gain from high standards. GISC offers an exceptional opportunity for firms to show that they are committed to, and can deliver, the high standards of customer service that people expect,” he said.
GISC chairman Anthony Howland Jackson praised the GISC staff, especially chief executive Chris Woodburn. And he promised that GISC would continue to consult with the industry and listen to concerns.
He claimed hundreds of applications from large insurers, Lloyd's brokers, independent intermediaries, accountancy firms and small IFAs plus commitments, but no forms, from banks and retailers.
IIB director general Andrew Paddick, who did not attend the launch, insisted Gavaghan was speaking for his employer Willis and not for the IBRC. “The IBRC hasn't said that at all. Many of the other IBRC councillors aren't happy with the GISC at all.”
