Last week the FSA published a discussion paper on transparency, disclosure and conflicts of interest in the commercial insurance market. Each of these issues is an important area of regulatory oversight which has been addressed before but which clearly warrants further attention. Previous surveys of the business have shown an inconsistent approach or desire to disclosure although there are also clear examples of good practice by certain firms. The focus is on intermediaries therefore with London being a broker market, IUA has a keen interest in the FSA’s findings.
Whilst each area has its own facets we believe that there is a clear link between them as a lack of transparency and disclosure leads to greater potential for any conflict of interests not to be managed effectively.
IUA’s stance on disclosure has been consistent; namely that there should be full disclosure of broker remuneration to enable potential conflicts of interest to be properly managed. During the forthcoming consultation period we are inviting comment from our own members on these important issues. We will continue to work with the FSA to promote sound and effective procedures in the areas of disclosure and transparency.
