E-commerce shut-down threat
Businesses trading online could have their websites closed down for minor transgressions, under tough new
e-commerce legislation.
The e-commerce regulations allow consumer bodies, such as the Office of Fair Trading, to apply to the courts for stop orders on websites that are damaging to consumers' interests. The regulations apply to all businesses that advertise or sell goods over the internet.
Under the new rules, websites will need to provide specific information, such as the name of the website owner and email contact details. Emails also need to comply with minimum standards.
Sites can also be closed because of omissions, such as failing to provide information on promotional offers, failing to provide terms and conditions, and failing to acknowledge orders.
Zurich supports brokers
Zurich launched an advertising campaign encouraging consumers to use local brokers for home and motor cover.
The adverts show a phone number that consumers can ring. Zurich will then direct them to a local broker from a database.
ZFS managing director Ian Owen said it would "provide a boost to the broker community, actively generating valuable new business through this important channel".
Hiscox develops extranet
Hiscox brokers and personal customers will be able to fill out proposal forms and request quotes on line by the end of next year.
The insurance company is developing an extranet to improve communication channels and re-engineer its business process. It is currently conducting trials and hopes to have all business on the extranet by the end of next year.
Hiscox currently has high value household policy and solicitors' professional indemnity on the extranet.
aTechnology trio team up
Polaris, Biba and 24 7 joined forces to create a set of commercial risk presentations to be used in the new Polaris e-market initiative.
The collaboration enables insurers to complete a standard commercial presentation to insurers for certain classes of business.
24 7 aims to have 20 brokers live on its online system by Christmas, said Rarrigini & Rosso chief executive Julie Rodilosso (pictured). At the start of October three brokers were using the system.
Regulation may shut small brokers
Up to 25% of brokers could be put out of business by the cost of complying with FSA regulations.
Compliance expert Gary Dixon, managing director of PYV Corporate Resourcing, said that the smaller firms would be unable to afford to hire a compliance officer. In this case, the lost management time and unearned income from achieving compliance could total £137,000 per firm.
Dixon estimates that FSA regulation would cost the industry at least £200m and possibly £900m.
Brokers welcome NIG-Avon deal
Brokers have welcomed NIG's takeover of Avon Insurance's 2003 renewals saying that it will increase competitiveness.
Avon is a wholly-owned subsidiary of NFU Mutual. The transfer will comprise 45,000 commercial and 305,000 personal lines policies.
Broker Network managing director Grant Ellis said he expected the transfer to give Avon more freedom to operate.
"Avon's departure from NFU ought to increase competitiveness, considering that NFU used to prohibit Avon from competing in similar markets," he said.
FSA consultation documents
The FSA will launch three consultation documents on insurance mediation in the next few months.
Two documents will be released in December, with a third following at the beginning of 2003.
FSA high street firms division head Sarah Wilson (pictured) said that the first will look at the "selling process", such as advertising, product disclosure and claims handling. The second will cover appointed representatives. And the third will focus on "issues that affect the firm" such a professional indemnity and capital adequacy.
Consultation will need to be completed and policy finalised by the second half of 2003.
ACE cuts off small brokers
ACE asked up to 150 small brokers to stop sending it new business inquiries for property and casualty cover. The insurer wants to concentrate on its bigger brokers.
The move came at a time when ACE was receiving a record number of inquiries.
Business development manager Steve Burridge said that the volume of requests had lead to "an unprecedented workload" and that the company "had to decide which of those were worth spending time on".
Burridge said the aim was to free up resources to improve service for more supportive brokers. Larger brokers sending more business to ACE would see an improvement in service, he said.
But Burridge stressed: "It is not a question of cutting [small brokers] adrift."
