Insurance News UK - Direct Insurers Equality

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Direct Insurer Equality

Added - 15/03/2007

At the car insurance news desk we have come across an old chestnut that is still causing frustration. BIBA The British Insurance Brokers Association is taking its fight with the FSA to greater and higher plains it was announced today.

The conflict exists over the way in which the FSA has softened it requirements in the way a direct insurance company can sell it insurance products over the way an insurance broker has to complete the transaction to the end consumer. Motorists buying their car insurance cover through a direct broker can now enjoy a faster and smoother sales experience because of those relaxed rules with direct insurers.

Members are angry that this removes the equality that was once the nucleus of FSA compliance. By offering the customer the ability to complete the transaction in such a faster way will only fuel arguments that equality has been compromised. The Whole issue surrounding BIBA frustration that �special� disclosure rules apply to the direct insurers lies in their desire to get the FSA to u-turn its decision.

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