Watchdog is cool for cats

an introduction by the GISC to their new regulatory regime:

Pet insurance is just one of a huge range of products covered by the term "general insurance". In fact most insurance for yourself and your property fall into the category of general insurance, so cat owners (like The Editor) form just ~ one of many groups who will now be protected by the new watchdog for the insurance industry, the General Insurance Standards Council (GISC)

Launched on 3 July, GISC regulates the sales, advice and service standards of anyone selling or advising on general insurance, with the aim of ensuring customers are treated fairly.

• General insurance covers such products as:
• insurance for your home (buildings and contents), vehicles, caravans, boats and pets; travel insurance;
• private medical, dental and personal accident insurance; extended warranty and breakdown insurance; legal expenses insurance and;
• payment protection for mortgages and other loans.

GISC doesn't cover the selling of life assurance and pensions (these are regulated by the Financial Services Authority), but if you're a holidaymaker taking out travel insurance, or you're offered an extended warranty with your new washing machine, or you want to insure the paws of your Persian pussycat, you should know about GISC.

The organisation was formed in 1998 following the Government's announcement of its intention to repeal the Insurance Brokers Registration Act 1977 - one of three regimes regulating general insurance.

"Our aim is to create coherence out of a fragmented system" explains Chris Woodburn, GISC's Chief Executive. "It's important for consumer protection that one set of Rules should apply to everyone dealing in general insurance. For example, a customer buying travel insurance should be confident they will receive the same standard of service whether they buy from their broker, their travel agent, their local supermarket, or direct from the insurer. "

As it stands there are thousands of organisations giving advice on and selling insurance which are not regulated at all. "Now customers have the opportunity to go to a GISC member, safe in the knowledge that the member firm has committed itself to abide by principles of good practice, and will be monitored by an independent body to ensure those standards are upheld" says Mr Woodburn.

The GISC Private Customer Code explains what consumers can expect from a member of GISC. Awarded the Crystal Mark by the Plain English Campaign, the code sets out how members will:

• act fairly and reasonably when they deal with you;
• make sure that all their services meet GISC's standards;
• give you clear information on services and products before you buy, and after they confirm your insurance;
• make sure you have all the documents you need;
• protect any personal information, money and property that they hold or handle for you; handle claims fairly and quickly;
• give you advice on how to complain, if you need to;
• correct mistakes and handle complaints quickly;

If the member fails to meet the standards of the code, and you suffer as a result, you have the right to complain under an independent complaints scheme to which all GISC members must belong (see box below).

The Private Customer Code is part of the GISC Rules which also require members to meet training and competency standards, and to meet financial criteria such as the segregation of insurance monies; minimum levels of professional indemnity insurance; and maintenance of sufficient assets to meet liabilities.

So, who decided what rules would give consumers the proper protection?

"We began consultation with the industry at the end of 1998," explains Chris Woodburn, "and whilst we had broad agreement to the proposals, the level of detail in the feedback clearly highlighted a number of areas for further debate." Accordingly GISC brought together industry representatives and consumer groups to form a number of working parties. The rules, published in June, are the fruits of this comprehensive process, but Mr. Woodburn is quick to point out that there is still room for development, "as markets change and as we gather information from monitoring members, I have no doubt the Rules will evolve".

Crucially, GISC has support from key industry bodies like the Association of British Insurers, Lloyd's and, not least, the Government. "GISC offers an exceptional opportunity for firms in the industry to show that they are committed to, and can deliver, the high standards of customer service that people expect" said Stephen Timms MP (Financial Secretary to the Treasury), at GISC's launch in July.

Support from the insurance-buying public is the next step. GISC has just begun a consumer awareness programme to promote the benefits of dealing with a member of GISC. In time, GISC's distinctive logo will become a familiar badge of quality, but there are already nearly 600 members of GISC, all of whom are listed on the web page www.gisc.co.uk alongside further information on GISC. Good news for anyone buying insurance - including cat lovers.

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