Forwarders lodge appeal against restrictive new insurance law

THE PROBLEM for the forwarding industry in the amendments to Section 20 bis of the Insurance Act is still not solved - but appeals for exemption from the new rulings are due to appear with the Registrar for Insurance of the Financial Services Board (FSB) about now.
The new regulations are intended to control the more wayward in the insurance broking industry who are not being too honest with the payment of premiums to the insurance companies underwriting the cover. But, while it achieves this, it also draws agents who collect premiums from clients for transport insurance, into the net - one which requires a letter of authorisation from the insurers involved, and a guarantee to back the premium volume handled.
Our industry has never been involved in anything illegal in arranging insurance for clients, said one agitated agent, and we are getting the whip intended for others laid on us as well.
The industry umbrella body, SAAFF (SA Association of Freight Forwarders), has these sentiments in mind, as it prepares a case for forwarders to be excused from these restrictive conditions.
Said executive director, Edward Little: We currently have a letter requesting exemption lodged with AMUSA (Association of Marine Underwriters of SA) - intended to back a similar request from them to the registrar.
Amusa have already put out feelers to the FSB, according to chairman, Dave Keeling. They (the forwarders) have a similar conflict to ours - although ours includes a number of what you'd term technicalities added to it, he said.
But with both SAAFF and AMUSA appeals together on the subject of exemption for the agents, Keeling feels that there will be more persuasive muscle in their submission.
Those technicalities don't seem to have met with much approval, though, according to Keeling. The suggestion we get is that what we have is what they (FSB) intended, he said. The agents are in the net. But that's what the FSB seemed to want anyway - with the aim of protecting the consumer. That's everybody who buys insurance.
But Keeling feels that the rulings (and the board's wishes) are in no way intended to obstruct commerce, and he feels that the joint-assault may gain some ears amongst the insurance industry regulators.
By Alan Peat