Aifa claims it could soon reach a deal with the General Insurance
Standards Council to end dual regulation of IFAs selling general insurance
policies such as waiver of premium and unemployment cover.
However, the GISC denies it is close to a compromise.
Aifa believes product providers are standing in the way of the GISC
blocking advisers regulated only by the PIA.
Norwich Union Healthcare says it will pay the GISC membership fees for
intermediaries involved in PMI sales which are not a central part of their
business. It says IFAs are going to be scared away from advising on PMI if
they are faced with yet another level of compliance and costs. With its
introducer scheme, IFAs rec-eiving PMI enquiries can pass them on to NUHC's
team of specialists. They will get commission for sales of policies made by
Aifa director of policy and technical services Fay Goddard says: “At our
last meeting, the GISC listened and seemed very perceptive. They seemed
comfortable with our stance.”
GISC head of policy Angela Darling says: “A satisfactory agreement on
unemployment cover has not been reached. Our scope on PMI has been defined
from the start and I am not aware of an approach to change it.”
NUHC spokeswoman Louise Zucchi says: “We recognise that those IFAs for
whom PMI is not a central part of their business will still need to meet
their clients' needs. The introducer scheme will allow them to do that.”