Euclidian has launched the first insurance compliance network solution for insurance distributors.
By September 30 this year, up to 30,000 distributors of general insurance products including travel agents, retailers, charities, doctors and dentists, need to join the General Insurance Standards Council (GISC).
Integrated Lloyd's vehicle Euclidian has now set up the General Regulation of Insurance Distributors (Grid) network organisation to target firms whose core business is not insurance. It will provide compliance services and product offerings so members will meet GISC standards.
James Truscott, executive chairman of Euclidian Group, said: “Small businesses whose core activity is not the provision of insurance may think that the new
regulatory requirements place too a heavy burden on them and decide to stop selling insurance.
“With commission levels between 10% to 35%, depending on the type of policy, we estimate a total of £100m of commission income would be lost to these distributors.
By joining the Grid network, they will be able to continue selling insurance as before and get all the GISC compliance support they need.”