Main points: 

• One Sure Insurance offers an advisory service, allowing customers to receive personalised policy recommendations from insurance experts. 

• Insurers and brokers cannot provide advisory services without permission from the Financial Conduct Authority (FCA) 

• For insurers and brokers to advise customers, they undergo a strict vetting and assessment process. 

• The Financial Conduct Authority (FCA) regulates the conduct and behaviour of insurance brokers. 

• The Prudential Regulation Authority (PRA) oversees aspects related to financial stability. 

Can Insurance Brokers Give Advice to Customers? 

You may have encountered insurance companies and brokers before who have specified that they ‘cannot provide an advisory service’. This means they cannot guide you or influence your decision to purchase a policy.  

When you choose One Sure Insurance to find your coverage, our team offers an advisory service to help you select the ideal policy for your needs. You can ask our insurance experts directly, “Which policy do you think is best for me?” and receive personalised recommendations. 

Many insurers and brokers can’t give customers advice to their customers as they require a strict vetting and assessment process to be given the green light to advise.  

To provide ‘advised sales’, a broker must be authorised by the Financial Conduct Authority (FCA). If the broker meets the necessary requirements, the FCA grants them permission to provide an advisory service and arrange general insurance. 

Is insurance advice regulated? 

The Financial Conduct Authority (FCA) regulates the provision of insurance advice. It sets standards and regulations to ensure that firms provide insurance advice that meets certain competency, honesty, and transparency criteria. 

Insurance advisors must be appropriately qualified and their firm must be authorised by the FCA to provide an advisory service. Additionally, firms offering insurance advice must adhere to FCA rules regarding the fair treatment of customers, the disclosure of information, and the suitability of recommendations. 

By regulating insurance advice, the FCA aims to protect consumers by ensuring they receive suitable recommendations and are treated fairly by insurance advisors and firms. 

What types of advice can insurance brokers provide? 

Insurance brokers can advise you on selecting the right policy and insurer for your needs. This type of service is vital not just for motorists looking for compulsory car insurance but also for professionals seeking commercial insurance policies.  

For the average consumer looking for common policies such as car, motorbike, scooter, travel and caravan insurance, a broker can advise them on the additional elements required to suit their needs.  

For example, someone looking for caravan or motorhome insurance may want a policy with foreign cover and protection for their contents. Equally, customers shopping for car insurance may need to be made aware that only some motor insurance policies include additional breakdown coverage. A broker can (excuse the pun) break down exactly which insurers they should opt for to ensure they have this extra level of coverage.  

For a non-wheels-based policy, let’s use holiday insurance as another example. This type of cover depends on where you travel, the kind of holiday you’re going on, how often you travel, your age, and whether you have a medical condition affecting insurance. A mature shopper looking for travel insurance might need a policy suited to the health risks faced by those over 65. At the same time, a more adventurous holidaymaker may be unsure whether their sporting activities can be insurable under the extreme sports elements of coverage.  

A broker’s advisory service can also be a huge benefit for professionals needing commercial insurance policies. For van insurance customers working in trades, a broker would be able to advise on the correct type of tool cover necessary for the value of their equipment. A delivery driver may be advised on additional goods in transit options or a combined courier insurance policy.  

Motor traders often require a broker’s advisory service as the industry encompasses many professions. Let’s look at car dealers and recovery vehicle operators as examples. These two professions are very different yet fall under the same ‘motor trader’ umbrella. However, their insurance must be suitable for their business and the varying insurable risks they face.  

Traders working in vehicle recovery will need recovery truck insurance specifically tailored to suit the risks in this dangerous profession, which involves long hours on the road. A car dealer operating from home may be looking to expand to other premises in the future, so their motor trade policy would need to have the appropriate motor trade combined coverage to suit their business operations.  

Who regulates insurance brokers in the UK? 

The Financial Conduct Authority (FCA) regulates insurance brokers and ensures that they adhere to standards of conduct and operate with integrity and transparency.  

Additionally, the Prudential Regulation Authority (PRA) may oversee certain aspects of insurance firms, focusing on their financial stability. 

Are the FCA & PRA the same? 

No, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are not the same, although they both play critical roles in regulating financial services. 

The FCA is responsible for regulating the conduct and behaviour of financial firms. Its focus is on ensuring the fair treatment of customers, maintaining market integrity, and promoting effective competition. 

The PRA, which is part of the Bank of England, regulates and supervises banks, building societies, credit unions, insurers, and significant investment firms. Its goal is to promote the safety and stability of financial firms. 

Specialist Insurance Broker Services at One Sure Insurance 

Whether you’re looking for personal cover such as car or motorbike insurance or a commercial policy for businesses like HGV or fleet insurance, we can help.   

Our dedicated experts will be able to guide you through the application and, most importantly, offer any advice you need. To get on the road to being insured, call our sales team on 08003777390 for a free quote.