So the General Insurance Standards Council (GISC) is already having an impact far greater than the badly written statutory regime of the Insurance Brokers Registration Act (IBRA).
It leaves a nasty taste in the mouth, though. The IBRA was meant to stop cowboys trading. Instead,
it stopped them calling themselves brokers. Insurers felt no compulsion then to cease trading with them. In fact they positively thrived on the unregulated selling of insurance.
It is these very same insurers, or, to be fair, their new incarnations, that are now ceasing to trade with sellers that they know cannot meet even the most basic of standards laid down by the GISC. But what is done is done. Hindsight is a wonderful science but foresight is what will make the difference.
And companies are demonstrating that the new regime will have some teeth. Those who sell small amounts of insurance as an add-on to their business will have to make significant investments in training and compliance if they are to continue.
For many, such an investment will not be worth it.
Why should a company not be prepared to invest time and money training its staff be allowed to sell insurance?
This is just the start. The GISC has always said it would be evolutionary. We know that accountants and solicitors will have to hive off their insurance selling divisions and be properly regulated or sign up with a local broker. How long will it be before the GISC has the same impact on supermarkets that cannot train all their checkout staff to the required standard?
Any regulatory regime poses threats but the best brokers and intermediaries have nothing to fear and everything to gain from the properly enforced regime that truly cuts out the cowboys.
Make the most of the opportunities.
