sold to customers, generally with the premium charged as part of an overall freight cost transaction.


Under FSA regulation from 14th January 2005 this will be deemed a regulated activity and the forwarder is having to make the choice now as to whether they intend to be a regulated firm or stop selling insurance altogether. The need for action is all too real as forwarders’ insurers are cancelling policies that provide this cover and run beyond 14th January.


The primary body representing the UK international freight services industry, BIFA have been arguing for an exemption from regulation for the industry, but have been unsuccessful.


Options


For exporters this means that the forwarder may no longer be able to provide the inclusive service and ease of access to cargo insurance for goods.


Options open to forwarders are to:


• obtain authorisation from the FSA to continue selling insurance in their own right be authorised to sell insurance under an umbrella arrangement with another authorised firm


• negotiate an arrangement with an insurance provider to effect introductions and to avoid the provision of insurance and therefore the regulation altogether.


Exporters who deal with forwarders who will be regulated will see no obvious effect on the freight arrangements they make.


If your preferred forwarder decides not to be engaged in selling insurance you effectively have three options: -


• Use the services of the insurance provider that your forwarder might introduce you to. If a forwarder is trying to introduce you to another insurance provider then it will be within the framework of a contractual arrangement between insurance provider and forwarder providing protection for the exporter that the arrangements in place are managed within the regulated environment.


• Use the service of your own insurance provider.


•Your own insurer and/or broker should be fully aware of the current legislation and regulatory framework relating to cargo insurance and the involvement of forwarders. They may not be a marine specialist and so they themselves may seek support from a specialist marine insurance provider.


• Use the services of a specialist provider.


•A small number of insurance intermediaries are marine specialists with solutions for both freight forwarders and exporters. They will be able to provide the forwarders with the contractual framework to effect introductions and insurance solutions for the exporters within the new regulated environment.


LINK


Neal Gordon, Operations Director, PoundGates & Co Tel: 01473 346006 Email: neal.gordon@poundgates.com Web: www.poundgates.com


SECOND ROUND OPENS FOR BUSINESS WSA CHALLENGE FUND -


Bill Callaghan, Chair of the Health and Safety Commission (HSC), today announced the opening of the second round of the Worker Safety Adviser (WSA) Challenge Fund. The fund operated by the Health and Safety Executive (HSE) will run between April 2005 and March 2007.


The aim of the fund is to inspire organisations to collaborate on projects that encourage and promote employees and their employers to work together to drive improvements in managing health and safety. The scheme focuses on small firms and organisations that lack such arrangements.


Applicants must demonstrate a commitment to improve health and safety, support the work of a WSA to promote worker involvement and demonstrate the vitality of the partnerships they have established to achieve this aim.


The application form and details of how to apply can be found at the link below.


LINK www.wsa-cf.org


NO. 37 • DECEMBER 2004


IV

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