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Press Release - 14 November 2003

CODES OF PRACTICE PROPOSED FOR INSURANCE BUSINESS

Today, 14 November 2003, the Jersey Financial Services Commission issued a second Consultation Paper on Codes of Practice for Insurance Business.

The new consultation paper responds to the many detailed responses from the insurance industry in Jersey to the first consultation paper issued in 2002. It also incorporates the principles established by the International Association of Insurance Supervisors in 2000 and the recommendations made by the International Monetary Fund following its review of Jersey's regulatory and supervisory regime.

The Commission's Director General, David Carse, said: "The new Codes of Practice are designed to give individual consumers greater protection both in the way policies are sold and in the way companies are supervised.

"All of the changes are common practice elsewhere or are required by international agreements, and we shall be working closely with Jersey's insurance industry to ensure that the Codes make an effective contribution to the Island's reputation as a world class financial centre. The new Codes will mean that insurance business in Jersey will be regulated in a similar way to other financial businesses in the Island."

Among the changes proposed in the new Codes of Practice will be:

  • A requirement that life insurance sales are based on a detailed 'fact find' so that customers will be given the reasons why a particular product is right for them;
  • The right for customers to receive a 'cooling off' notice and to know what charges and commissions are being levied;
  • New requirements for corporate governance and the treatment of derivatives and off-balance sheet items;
  • New guidelines on advertising and sales commissions;
  • New guidelines on training and complaints handling;
  • Additional supervisory visits by the Commission.

The Consultation Paper raises a number of important questions, and the Commission looks forward to receiving a full range of responses from the industry.

For further information contact:

Nigel Woodroffe
Director Insurance
Jersey Financial Services Commission

Telephone: +44 (0) 1534 822015
Facsimile: +44 (0) 1534 822001
Email: n.woodroffe@jerseyfsc.org

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