Norwich Union urges brokers to persuade freight clients to choose regulatory status
Brokers should encourage their freight forwarding and household removal commercial clients to become introducer appointed representatives, said Norwich Union (NU).
The insurer's marine development and claims manager, David Shaw, said the option of becoming an introducer was the best option for both clients and intermediaries.
"Our preferred option is for them to become appointed introducers. They can become directly appointed, but this is really only a practical option for the larger firms.
"They can become the appointed representatives of their own intermediary but this would put a large regulatory burden on the intermediary.
"Becoming an introducer is a halfway house. They can pass on the contact details of the intermediary to their clients, but will not give advice."
Shaw said both the freight and the household removal industries were well aware of the problems they faced under FSA regulation.
The British International Freight Association has been lobbying the Treasury in an attempt to gain an exemption for its members, but Shaw said it now looked unlikely that there would be an exemption granted before the start of general insurance regulation.
NU has urged brokers to place cover through its online CargO System. It said the system would help reduce the extra administrative burden on brokers, caused by placing the cover.