The General Insurance Standards Council says it will continue to provide consumer protection despite its failure to convince an appeals tribunal that forcing its members to only deal with other members was not anti-competitive.
Last week the Competition Commission Appeals Tribunal reversed a decision by the Director General of Fair Trading – on appeal by the Institute of Insurance Brokers and ABTA - that the GISC could introduce Rule F42 which states that GISC members (either an insurer or an intermediary) may only deal with another organisation if it is also a member or is an appointed agent of a member.
A statement issued by the GISC reads: “Rule F42 is not in force and will not be bought into force until the ultimate outcome of further proceedings before the director general and any appeal to the appeals tribunal that may be brought. For the time being therefore, the GISC will continue to provide consumer protection as a voluntary regulatory body.
“GISC members remain free to deal with non-GISC intermediaries and should avoid any action which might suggest that intermediaries are required or expected to apply for GISC membership or to act as appointed agents under the GISC rules.”
The GISC, the statement says, continues to believe the fair treatment of consumers will be best achieved through “a common system backed up by an effective monitoring regime”.