To commingle or not, that is the question

While brokers may welcome the decision last week by the Financial Services Authority to allow intermediaries to continue the commingling of insurer and client funds, there is one proviso in that insurers will have to give their consent in writing, leaving them the option to stipulate that money collected should be segregated if they wish.

Many of the insurers PM has spoken to this week have confirmed they will allow this to continue but the silence from others may raise concerns among the broking fraternity, which has fought for the change.

The fact that two camps exists was confirmed by the Association of British Insurers, which welcomed the decision for allowing some flexibility, but added: "Some companies are leaning towards allowing commingling and others are looking for insurer money to be held separately," (see p4). Whether this has any affect on who brokers chose to place business with - comminglers and non-comminglers - remains to be seen.