Aifa director general Paul Smee is planning to lobby the FSA and the Treasury to ensure the regime being designed by the FSA for the protection market is proportionate.
It has formed a protection working party of providers and intermediaries, which will be keeping a watching brief on the FSA as it prepares for the regulation of general insurance, including protection, from January 2005.
Protection intermediaries say Smee has been trying to convince them to join Aifa by saying it is no longer focused strictly on the interests of IFAs, as the lines between different types of intermediaries are becoming increasingly blurred.
Aifa is looking to expand its membership but it has no plans at this stage to form a sister or subsidiary trade body, as it did for mortgage regulation with the formation of the Association of Mortgage Intermediaries.
Smee says: “If the FSA is getting involved, then we have to get involved and make sure that they design any regime appropriately. We will be expanding our services to our existing members and also targeting new members who are primarily in the protection market.”
Lifesearch spokesman Kevin Carr says: “The more work that they do in the protection market can only be a good thing.”