Question: I work as an insurance and risk officer for a local authority and believe that I may be exempt from FSA authorisation. Historically we have provided mortgages for council tenants. Part of their monthly repayment provides building cover through our insurers (Zurich Municipal). Do I need to obtain authorisation direct from the FSA? I do not consider myself to be an introducer or a tied agent as we are providing cover for our property prior to the full purchase following mortgage redemption.
Zurich has advised that authorisation will not be required as our insurance dealings with third parties are limited to issues in which we have an insurable interest, but it has not committed itself to this advice.
Could you please clarify the situation?
Answer: This is quite straight forward - local authorities have an exemption (this does not apply to their subsidiaries, however). See the FSA perimeter guidance document, the exemption is stated on page 170.