Groupama Insurances is to accept the risk transfer of premiums as part of a revised terms of business agreement.
Groupama distribution and customer service director Amanda Blanc, said: “The fact is that the concept of risk transfer of premiums simply reflects market practice. However, historically insurers have not been clear about it and understandably this has been a cause of concern for intermediaries.
“From our point of view, we want our business partners to have the necessary reassurance and we are writing to them to inform them of our decision.”
Groupama said it intends to take full account of the results of the ongoing process of market consultation with the FSA on co-mingling in determining the detail of any revised terms of business.
“We think that the ongoing process of consultation will be very valuable in sorting out the detail and will help to ensure that the needs of insurers, the broking community and their clients are reflected fully in the outcome,” said Blanc.
“Once the position is clear, we will be in a position to finalise our terms of trade so that there is clarity.
“In the meantime, we want to remove any confusion for supporting intermediaries so that they know exactly where they stand in their dealings with Groupama.”
