GUE GFSC published consultation proposing amendments to rules for the 35 insurance intermediaries operating in the Bailiwick to include additional disclosure requirements.
Summary
Proposals would require intermediaries to provide more information to customers to help them make informed decisions about the insurance products they purchase.
Includes additional requirements to name and disclose relationship to insurers they represent e.g., whether they own or are part of the same group as the insurance firm.
Plus disclose whether they are representing clients or acting for/on behalf of insurers.
Identify and disclose whether they offer insurance products from a limited number of insurers (three or fewer); and disclose the basis on which they are remunerated.
GUE GFSC said these represent industry good practice, seek to formalize existing codes of conduct requirement, would support compliance with international standards.
Effectiveness
Comments are invited until Jan. 29, 2024.
Apr. 2024 Amendments Finalized
On Apr. 4, 2024, GUE GFSC published a feedback paper following the consultation on the disclosure rules for insurance intermediaries and included the final amendments.
GUE GFSC received 6 responses to its CP, in addition to the initial feedback received from its engagement with industry prior to publication; feedback was mostly positive.
GUE GFSC intends to proceed with the proposed changes after slightly re-phrasing rules 7.4.4.(2)(c) and (d) and re-wording some of the guidance boxes, for clarity.
The Insurance Intermediaries (Amendment) Rules, 2024 that amend the Insurance Intermediaries Rules, 2021 (the Rules) will come into force on Jan. 1, 2025.
Consolidated text incorporates Insurance Intermediaries (Amendment) Rules, 2024.
Insurance Intermediaries Rules, 2021 replaces Insurance Managers and Intermediaries (Licensing) Regulations, 2002, and other former GUE GFSC rules as set out.
Replaces Insurance Managers and Insurance Intermediaries (Client Monies) Regs, 2008, and Insurance Managers and Intermediaries (Annual Returns) Regs, 2008.
Also, Insurance Intermediaries and Insurance Managers (Approved Assets) Regs, 2008 and Insurance Intermediaries (Conduct of Business) Rules, 2014 are replaced.
Rules as of Jan. 1, 2025 as per Insurance Intermediaries (Amendment) Rules, 2024.
