§ Mr. Anthony Grantasked the Secretary of State for Trade if he will make a statement on the codes of practice for insurance intermediaries published by the British Insurance Association and by the Life Offices' Association, Associated Scottish Life Offices and the Industrial Life Offices' Association.
§ Mr. EyreI welcome the initiative of the British Insurance Association and of the three associations of life offices in publishing self-regulatory codes of practice for the selling of insurance by non-broker intermediaries. I am glad to say that I understand that the member companies of the Linked Life Assurance Group have also agreed to abide by the code for life assurance selling.
The consumer is generally well served by the insurance industry but there is no room for complacency and the codes should help to raise standards amongst intermediaries. I am particularly pleased to see that the codes include provisions on complaints and the enforcement of standards set out in the codes.
In seeking to raise standards, the codes have a similar objective to that of the Insurance Brokers (Registration) Act 1977, but the introduction of the codes does not detract from the desirability of eligible insurance broker intermediaries being registered under the Act.
I commend the new codes to all insurance companies—whether or not members of the insurance associations concerned—and to all insurance intermediaries in the expectation that they will observe the standards set.
Copies of both codes are placed in the Library.