Andrew Honey, the Financial Services Authority’s head of insurance, small firms division, told conference delegates at the BIBA conference in Stirling Management Centre at Stirling University that the FSA had seen many examples of good practice amongst brokers, but also warned that teething problems still remain.
He acknowledged that firms are keen to learn and raise standards. Honey reminded firms that a system like electronic reporting goes to the heart of the FSA supervision strategy for small firms. It enables the FSA to conduct a virtual visit so reducing the likelihood of firms undergoing an actual visit. Honey pointed out that extra help on this system is available on the FSA website.
Disclosure and payment protection insurance will be among the major topics for the FSA in 2005/06, Honey added.
And he also highlighted the issues of claims handling, client money, critical illness and controls over appointed representatives as ones to watch for the FSA.
BIBA Scotland chairman, Lorraine Dillett, a director of Alan Mackay Insurance Brokers in Ayr, said: "It is good to hear that the insurance industry has made an encouraging start following the introduction of statutory regulation.
"More work though needs to be done and BIBA is committed to ensuring that its members receive as much help as they need.
"We are delighted that the BIBA Scotland regional conference was such a success and we look forward to next year’s so we can re-establish the conference as a significant part of the insurance year for this area."
The conference, BIBA’s first in Scotland since 2002, also heard from MSP Euan Robson and Professor Charles Munn, chief executive of the Chartered Institute of Bankers Scotland. BIBA chief executive Eric Galbraith hosted the event along with Lorraine Dillett.
Sponsors for the event included NIG, Norwich Union and AXA and another xx insurers took stands in the exhibition, along with premium finance companies, loss adjusters and IT support companies.
