But behind the scenes a great deal of work has been taking place to prepare for the new legislation. Not just the insurance companies and insurance brokers operations, but every piece of literature that provides factual or promotional information about insurance, advertisements, claims processes, accounting, to name just a few have had to be stringently reviewed.

Probably the biggest single effect on the marine industry has been the impact this regulation has had on the many marine organisations which helped customers arrange insurance as part of the service they provide.

Navigators & General, the UK's largest pleasure craft insurance company started working on a project to prepare their marine trade agents to operate effectively as "Introducer Appointed Representatives" in March 2004.

The marine trade represents a significant proportion of our account, not to mention the longstanding and close relationships that exist. It was essential that we ensured this distribution channel was fully prepared for the new rules and regulations and able to carry on assisting customers with their insurance requirements in a fully compliant manner.

N&G held a seminar in London on FSA compliance in April 2004 to give an early indication of what would be required. Shortly after we commenced the design of a whole new suite of promotional material that would allow our marine trade introducers to operate in a compliant manner.

All agents were then contacted by phone to ensure they fully understood what level of FSA operation we would allow them to operate. That was followed up in writing with confirmation of exactly what they could and couldn't do, in terms of introducing business to us.

The vast majority would become Introducer Appointed Representatives (IARs), which basically means that introductions could be made to the insurer, but advice, recommendation, obtaining quotes, and collecting premium was prohibited.

Appropriate terms We then had to get the appropriate terms of business agreement signed and returned, and register all our IARs with the FSA.

Once completed marketing/ promotional packs were sent out to our IARs. These contained compliant freepost quotation forms, redesigned to make it clearer which IAR introduced the client, with smaller cards for customers who just wanted a point of contact, again with an IAR reference point, new posters and other promotional material.

Whilst the dealers understand what the FSA is and why we have to enforce it so strictly it has been difficult from their point of view to see the advantages of its restrictions.

Part of the sales process, or benefit from being a member of a club or association was the recommendation of that body of experienced people, or the convenience of having your dealer arrange insurance with a company they trust.

We have introduced a system where we make it as easy as possible for our marine trade IARs to put customers in touch with us. This can be through website links, by the cards or quotation forms displayed, or by the dealer passing us contact details, (with customer consent) for any new customers who want a quotation or some advice.

The dealers who introduce to N&G are now much more reliant on us to deliver good service and competitive premiums to the customer now they cannot oversee the quotation process. We are very aware of that and consider the level of service we provide on behalf of the IARs paramount in effectively supporting that distribution channel.

To ensure we don't let our IARs down we have a dedicated team of staff looking after a panel each with accountability for introductions from any one of their dealers. Dealers are surveyed on their performance as a company and for their account handlers who are measured based on the results.

Ensuring the ongoing compliance of our IARs is also very important, particularly with the FSA mystery shopping dealers to ensure they are aware of the regulations. As part of our regular surveys we are checking dealers' understanding of their responsibilities and providing additional support or training where it is required.

There can be no doubt that this transformation has been difficult for the marine trade IARs. It has been no easy ride for insurance companies either. The regulations are not optional and it is up to all of us to ensure that the customer does not suffer as a result.