Officials at GISC have conceded it is unlikely to achieve its goal of compulsory membership in the next year, with the system continuing on a voluntary basis for the foreseeable future.
However, with mandatory membership initially budgeted to provide more than half of the organisation’s funding, questions are now being raised about future cash flow.
And, with many potential members now unlikely to join, the long term viability of GISC could be under threat.
The GISC board was meeting to determine what action to take as Health Insurance went to press.
The first indication that GISC was unlikely to be able to achieve compulsory membership came when it became clear it was unlikely to produce its rulebook to its original March 1 deadline.
Chief executive Chris Woodburn has been quoted as saying that the massive response to GISC’s second consultation document is responsible for the delays in the system.
This saw queries raised about the organisation’s position on membership fees, the ombudsman scheme, professional indemnity and training.
The move towards a compulsory membership body has been fiercely contested by some parts of the industry. This was supposed to be enforced by ABI members, who had agreed to cancel agencies with brokers who did not join up. But broker trade body, the Institute of Insurance Brokers, has threatened legal action against this .