The General Insurance Standards Council is privatising the monitoring of compliance procedures, but successful bidders will have to exercise a gentle approach.
The self-regulating body for the insurance industry has been approached by 18 businesses interested in undertaking supervisory visits of the GISC's 30,000 potential member firms.
Up to three monitors may be appointed for different categories of membership, among them Lloyd's brokers, solicitors, and registered insurance brokers. Accountants PricewaterhouseCoopers will continue to supervise independent intermediaries for the time being.
The visits will include tests of sales practice, insurance money segregation, competence and training and customer complaints.
One in 100 of the visits will be in-depth investigations agreed by the GISC board. The monitors will report serious breaches of GISC rules for possible disciplinary action and issue regular bulletins on the progress of their work.
Chris Woodburn, GISC chief executive, said large accountancy and consultancy firms were among those tendering.
He stressed winning firms must meet standards without antagonising members.
"The style must draw members into our regime rather than rely on a 'kick down the door' approach," he said.
Woodburn said a gentle approach was vital because many of the GISC's 30,000 potential members were not used to close inspection of their work.
The GISC's invitation to tender states the approach should be based on: pragmatism, practitioner involvement, consultation, clear objectives and a culture whereby compliance is seen as a reflection of good practice and economic sense.
Parties have until September 30 to tender for the monitoring work.
The GISC roadshow is coming to a town near you
The General Insurance Standards Council next month launches an information offensive in a series of roadshows around the country. GISC staff will present news on proposed standards and regulations to brokers, insurers and intermediaries.
Many brokers contacted by Insurance Times this week were unaware of Operation Roadshow. But those who were, welcomed the opportunity for a head start on preparations for the new regime and to make their views known to GISC staff.
Roger Mills, of Chester-based Astbury Wren and Company, intends to spare at least two staff members for the Manchester roadshow. But he believes the roadshow's success "depends on how much information they give us on the regulations. One would hope they'd be reasonably specific by now".
Martin Bell of Camberford Law, south east London, argues that: "It's a good opportunity for everyone to become familiar with the new arrangements. But brokers who operated voluntarily under the IBRC shouldn't have too much difficulty meeting the GISC code."
The roadshows should also allow brokers to influence GISC thinking at a key time, according to Terry Reed, of Terry Reed & Co, Bishops Stortford. "It enables you to meet the front-line troops putting the issues together, and for brokers to voice their concerns."
Reed believes that nervousness about the GISC is simply fear of the unknown. "No doubt elements of running the business will be affected, like evidence of documentation and keeping certain files. But you have to adapt - its a fact of life"
The roadshow dates and venues are October 25, Thistle Glasgow Hotel, Glasgow; October 27, International Conference Centre Birmingham; November 1 Renaissance Manchester Hotel, Manchester; November 3, Crowne Plaza Hotel, Bristol; November 10, Sedgwick Centre, London.