Insurance Brokers

Treasury written question – answered on 18th November 2003.

Alert me about debates like this

Photo of Mr Roy Beggs Mr Roy Beggs UUP, East Antrim

To ask the Chancellor of the Exchequer what measures are in place to stop the practice of grossing up by insurance brokers in Northern Ireland; and what plans he has to change the appropriate legislation to protect consumers from the grossing up of insurance premium commissions.

Photo of Ruth Kelly Ruth Kelly Financial Secretary, HM Treasury

Grossing up is a serious abuse of the market. The Government is giving the Financial Services Authority (FSA) responsibility for regulating general insurance as from 14 January 2004. The FSA is currently consulting on its rules in CP187. The FSA considers there is more opportunity for such market abuse in the commercial rather than the retail market, and therefore does not propose to introduce commission disclosure for retail customers. But, for commercial customers, it will be requiring intermediaries to disclose commission earned by them and any affiliated intermediaries if requested to do so by a commercial customer.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.