The FCA recently found that underinsurance was rife throughout the industry
The Insurance Brokers’ Standards Council (IBSC) has launched a consultation paper addressing broker’s responsibilities in the ongoing issue of underinsurance.
IBSC broking members have been given until the end of December to respond to the consultation paper, with the body looking for response on whether its guidance is accurate and in accordance with general opinion.
It claimed that it might change the paper dependent upon responses.
According to the IBSC, the broker must always have a duty to ensure the customer is sufficiently covered.
The paper said: “Inadequate insurance or under insurance may be the result of poor advice or lack of advice from an insurance broker, but equally it can the result of lack of attention, laziness or more sinister intentions on the part of the client.”
“The nub of this paper is that insurance brokers should clarify what advice they are and are not going to give and that clients should be well informed about the risks of under insurance or lack of insurance.”