U.K. grants freight forwarders insurance exemption
The U.K. government has given freight forwarders an exemption from the scope of the Financial Services Authority insurance regulations, meaning they will no longer need to be registered with the FSA to offer marine or cargo insurance direct to customers.
Following the introduction of the Insurance Mediation Directive in January 2005, many British freight forwarding companies withdrew insurance provision to customers. Now, companies that are not authorized and can comply with the conditions of the exemption will be able to resume the provision of insurance services.
However, freight forwarders that have already obtained authorization from the FSA will continue to be authorized and liable for FSA fees unless they apply to cancel their authorization. This can be done by using the cancellation form, which is available from the FSA’s Web site at www.fsa.gov.uk.
The exemption will initially only apply to the provision of insurance for commercial customers. It will not apply where a freight forwarder or storage company is doing such business with a private individual. Authorization will still be required in these circumstances.