Association calls for market solution over transparency
AIRMIC has welcomed the FSA statement on broker remuneration and its continued interest in this important subject, whilst calling for a market solution to resolve shortcomings over transparency.
The association supports the work on potential conflicts of interest arising from broker remuneration planned by the FSA during 2008, and looks forward to contributing positively to these efforts. It also backs the standardisation of disclosure calculation and the work planned by the FSA in this area.
Paul Hopkin, technical director, said: “We agree with the FSA that large buyers of commercial insurance of the type represented by AIRMIC now generally receive full disclosure about what the broker earns on the account. We also accept their view that the main problems of non-disclosure occur in the middle market.
“The SME market remains a big concern to us since best practice is best practice, regardless of the size of company. Some AIRMIC members are in this sector, whilst smaller firms are an important part of the supply chain. We shall be watching closely, and feel there should be further progress.
“We hope that the market can produce its own solution, just as is it did with contract certainty. This is something we shall be working towards.”
