Commercial Insurance Commission Disclosure
We worked very closely with the FSA, as did the industry and other bodies, to develop an ‘industry solution’ to address the potential for detriment in the commercial insurance market. One of FSA’s key drivers to this work was the potential for market failure.
During this process the Panel was particularly disappointed at the FSA’s decision to publish a formal Discussion Paper on this issue despite the FSA’s own market failure analysis, conducted by an independent research agency, Charles River Associates, showing no particular causes for concern with regard to commission disclosure.
If you have ideas or experiences that could contribute constructively to the Panel’s opinions and debates on this topic, please do use the feedback form below.
Do you want to comment?
Thank you for providing comments. The SBPP will use this information to help inform its discussions on financial services regulation.
What the SBPP has said previously on this topic:
In October 2006, the FSA announced its intention to undertake thematic work to review commission disclosure in the commercial general insurance market. The Panel was opposed to any introduction of mandatory commission disclosure and, in December 2007, the FSA announced that its analysis indeed showed that such disclosure was not justified - in line with the Panel’s view. The Panel was therefore disappointed at the FSA’s subsequent decision to publish a formal Discussion Paper on this issue; but will nevertheless work with the FSA to help ensure a credible, pragmatic and objective outcome is reached insofar as smaller firms are concerned.