Insurance distribution and loss adjusting rules

This guide covers the conduct and standing rules for insurance distribution, loss adjusting and claims handling, on top of the shared duties in run a regulated financial services firm. If you are setting up a broking business and need the authorisation step itself, start with FCA authorisation for insurance brokers and start an insurance broking business, then come back here for the full conduct picture for insurance distribution. Everything here applies UK-wide.

Hold the insurance distribution permission and meet its conduct rules

Advising on, arranging and dealing in contracts of insurance are regulated activities — the insurance distribution regime sets the permission, knowledge-and-competence and conduct standards for everyone in the chain.

Meet the intermediary conduct duties

The day-to-day conduct layer: identify each customer's demands and needs before proposing a policy, give retail customers the product information document for general insurance, protect client money under the insurance client money rules, hold professional indemnity cover, and — if you handle claims as an outsourcer — meet the claims-handling standards.

Loss adjusting: permissions and professional standing

Loss adjusters assess and negotiate insurance claims — activities that generally need FCA permission where they involve regulated claims handling — and the profession runs on chartered standing and its own indemnity expectations.

Next steps

Make sure the shared duties in run a regulated financial services firm are in place, then confirm everything with the financial intermediary compliance checklist.