Conflicts of interest - In your best interests
We have authority from some insurers to discount or match rates in order to secure business and I have been told that this should be declared in our conflicts-of-interest policy. Is this correct?
Yes, it is correct. Under the law of agency, you are expected to find the best deal for your principal, which is the client ordinarily. If you were to withhold a discount that was available to you simply because it was not necessary for you to secure the business then this would conflict with your prime duty. It may help both you and the insurer, yet if the client found out that you had done this then they may not understand.
Your conflict-of-interest policy should set out how situations like
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk.
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Regulation
Sicsic FOI uncovers insurance firms’ £2.7m S166 bill
Insurers and insurance intermediaries paid a total of £2.7m for Financial Conduct Authority-commissioned skilled persons reviews in the financial year 2023/24, according to a Freedom of Information request by Sicsic Advisory.
FCA reveals review findings of first annual Consumer Duty board reports
The Financial Conduct Authority has set out five areas for improvements and five good aspects having reviewed the first annual Consumer Duty board reports from 180 firms.
FOS forecasts levy freeze at £70m
The Financial Ombudsman Service is planning to maintain its levy for 2025/26 at the £70m total set this financial year.
FCA not seeking further headcount boost, says CEO Rathi
The Financial Conduct Authority is not “anticipating further significant growth” in headcount with the figure having risen from around 4,000 in 2020 to just over 5,000 today, CEO Nikhil Rathi has confirmed to the Treasury Committee.
FCA makes “significant changes” to ‘name and shame’ proposals
The Financial Conduct Authority is making four “significant changes” to its initial transparency proposals labelled ‘name and shame’.
MPs and peers slam “incompetent at best, dishonest at worst” FCA
A cross-party group of MPs and peers has hit out at the Financial Conduct Authority and demanded substantial changes after its call for evidence found the regulator “is seen as incompetent at best, dishonest at worst”.
Blog: What implications could the motor finance scandal have on insurance brokers?
As the industry shoots itself in the foot. Again. Matthew Maxwell Scott, founder and executive director of the Association of Consumer Support Organisations explores how the motor finance scandal fallout might see brokers caught in the cross-fire.
Government to consult on leasehold commission ban “very shortly”
The Government has revealed it plans to consult on a proposed ban on leasehold insurance commission next year.