When companies purchase products or services, they quite reasonably wish to ensure that the company they are purchasing the products or services from acts in an appropriate manner and that they are protected if problems arise. However, companies are often unfamiliar with the way that group risk insurance operates in the UK, or the protection automatically provided through financial services laws and regulation. This can lead to several areas of misunderstanding.

This Statement is intended to provide guidance and positioning to assist insurers and advisers with clients proposing agreements in addition to, or instead of, the insurance policy.

This Statement of Best Practice has been formulated to explain:
• the approach recommended by GRiD that firms should take in relation to supplier agreements, non-disclosure agreements and service agreements;
• how group insurance operates; and
• the safeguards in place for purchasers of this insurance cover.

In addition to this statement of best practice, firms may provide additional information on their own policies and protocols outlining how they operate.

To read please download the document available here.