GISC Launch Imminent

The General Insurance Standards Council (GISC) will be launched on 3rd July 2000. It will be a new single regulator for the general insurance industry overseeing insurers and intermediaries who market general insurance products in the UK. CMS Cameron McKenna are the solicitors to GISC.

The GISC regime is expected to replace the present arrangement under the ABI (Association of British Insurers) Code of Practice for the sale of general insurance. Lloyd's of London (Lloyd's) has also announced plans to cede regulation of Lloyd's brokers to GISC (with Lloyd's managing agents exercising increased commercial oversight over intermediaries).

Timetable

Following two consultation exercises, GISC expects to publish its rulebook in early June 2000 and applications for membership will be accepted from that date. Initial applicants will become members subject to GISC regulation from 3rd July 2000.

Who can join GISC

GISC members will include insurers and a wide variety of businesses selling or advising on general insurance. The scope of regulation will therefore be very broad with a potential membership of 30,000 businesses, including insurers, reinsurers, insurance brokers, Lloyd's brokers and syndicates, retail banks and a variety of other businesses including those which act as company agents for insurers.

GISC rules

The GISC rule book will include

* the code of practice for private customer business

* the requirements for commercial business

* financial requirements for intermediaries

* training and competence

* e-commerce

The rule book includes detailed provisions on membership, enforcement and the disciplinary process, and GISC is appointing monitors to check members' (and their agents') compliance with GISC's requirements.

If your organisation requires any information or advice concerning the new GISC regime, please contact Partner, Nick Paul on Tel: 0207 367 2806 Fax: 0207 367 2000 e-mail: [email protected]