Regulatory Alerts2020-01-20
Distribution Channels and Intermediation Arrangements
The Financial Sector Conduct Authority mandates new distribution channel and intermediation rules for microinsurers, governing intermediary agreements with representatives and independent intermediaries. The framework specifies uncapped commissions for risk, funeral, and most non-life business, while capping credit life premiums and high-value motor benefits. It further regulates binder agreements by defining permitted functions, fee structures for non-mandated intermediaries and underwriting managers, and imposes strict 30-day advance notification for new agreements and 60-day termination reporting to the FSCA.
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