British brokers who have resisted signing up for the General Insurance Standards Council have won their first victory in their battle against the umbrella organisation. The GISC is writing to its insurer members ­– all registered British insurance companies – to warn them they have to deal with Institute of Insurance Brokers members who refuse to join it.  For now, at least.

Institute of Insurance Brokers Director-General Andrew Paddick has mounted a case against the British Office of Fair Trading – the UK equivalent of the ACCC –  which approved the “compulsory” nature of the new General Insurance Standards Council. The IIB maintains that GISC members have no legal right to refuse to deal with non-member brokers. Most IIB members have opted not to join the GISC. Mr Paddick’s appeal will be heard before a tribunal on July 20.

The GISC has been gearing up to make membership compulsory by September, after which members will not be allowed to deal with non-members. Mr Paddick has alleged that many brokers applied to join the GISC “as a result of undue GISC member insurer influence”. This has included threats of refusal to deal with brokers, or cancellation of agencies.