EU forwarders fall into line on insurance registration

JOY ORLEK
THE DEBATE in Europe over whether freight forwarders who offer insurance should be classified as Financial Service Providers has been resolved, with the EU falling in line with the UK stand.
This despite an assertion by the British International Freight Association that the provision of insurance by freight forwarders through open cover policies in their name is not insurance mediation. “However, there are certain activities that are aligned to this that drag forwarders into the scope of the directive,” said Robert Keen, BIFA general manager, in a recent announcement to members.
Member states in the EU maintained until recently that the legislation would not apply to freight forwarders in their countries, but at a meeting in Brussels early last month, they decided to fall in line with the UK.
BIFA is however looking into a re-engineered insurance product that falls outside the scope of the Insurance Mediation Directive. This would be an insurance offer that does not require registration.