NIG is to accept risk transfer in its new terms of business agreement (TOBA).
The agreement will say that premiums received are to be held by the broker as agent of NIG, according to the insurer.
Brokers will be required to keep the premiums in a designated trust account, but NIG said it accepted that co-mingling would take place until there was any further clarification on the matter through the FSA consultation process.
NIG managing director Charles Crawford said: “This is a positive move and one we expect to be widely welcomed.”
Brokers will be receiving the new TOBA shortly.
