Code of Conduct for Authorised Insurance Representatives

Summary

This Code sets out conduct standards that Authorised Insurance Representatives (AIRs) in the Bailiwick of Guernsey must follow when advising on or arranging general insurance and long term pure protection products. It extends the Commission's Principles of Conduct of Finance Business and works alongside the Insurance Intermediaries Rules 2021, which require licensees to ensure their representatives comply with the Code.

• Integrity: AIRs must act honestly, comply with relevant laws and their licensee's policies, treat customers (including vulnerable customers) fairly, keep customer information confidential, and promptly report any breach of the Code to their licensee.
• Skill, care and diligence: AIRs must act competently, verify policy accuracy, give suitable advice, deal with correspondence promptly, keep proper durable-medium records, and only arrange add-on policies with the customer's positive consent.
• Training and competency: AIRs must comply with their licensee's training and competency scheme and keep up to date with technical, market and legislative developments.
• Conflicts of interest and information handling: AIRs must manage conflicts of interest and gather and give customers clear, timely information before, during and after policy inception, including at renewal.
• Long term pure protection products: Additional requirements apply, including ensuring sufficient product and tax knowledge, not advising cancellation or lapse unless in the customer's best interest, and confirming in writing where a customer arranges a policy without advice.
• Transitional arrangements: On first renewal after the Code's introduction, customers must positively opt in to continuing any add-on policy; licensees must implement systems to confirm prior-year premium at renewal, expected no later than the first anniversary of the Code's introduction.

The Code applies unless the Commission agrees in writing to exclude or modify a provision for a licensee. It revokes and replaces the prior Code of Conduct for Authorised Insurance Representatives effective from 1 January 2015.

Key obligations

• AIRs must take reasonable steps to comply with all relevant laws, regulations, rules and codes when dealing with customers.
• AIRs must immediately inform the licensee if they breach any part of the Code.
• AIRs must keep proper, durable-medium records of information gathered, advice given, and actions agreed with customers.
• AIRs must not arrange an add-on policy unless the customer has positively consented to it.
• AIRs must comply with any training and competency scheme implemented by their licensee.
• AIRs advising on long term pure protection products must not advise conversion, lapse, cancellation or surrender unless demonstrably in the customer's best or stated interests, and must document such advice.
• Where a customer requests a specific policy without advice, the AIR must confirm this in writing.
• On first renewal after the Code's introduction, customers with add-on policies must be given the opportunity to positively choose to continue each add-on policy.
• Licensees must ensure systems allow confirmation of prior-year premium to customers upon renewal, implemented as soon as reasonably possible and by no later than the first anniversary of the Code's introduction.
• A person must not use the title 'authorised insurance representative' unless authorised to do so by their licensee.

Applies to

Authorised Insurance Representatives, licensed insurance managers, licensed insurance intermediaries

Deadlines

• 1 April 2017: Date the Code comes into operation, as stated in section 1.1.1 (revoking the prior 2015 Code from this date).
• first anniversary of the introduction of this code: Deadline by which licensees are expected to have made system changes to confirm prior year premium to customers at renewal (sections 8.4.2 and 8.4.3).

Related documents

• This document is made under Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 (Consolidated text)