Measures making it easier for customers to discover the type of service they will get from different insurance intermediaries have been introduced by the Minister for Science, Technology and Commerce, Mr Treacy.

Section 49 (2) of the Insurance Act 1989 is to come into effect from January 1st, 1998. The section sets out clear differences in the roles and responsibilities of insurance agents and insurance brokers. Agents act for a limited number of companies and must name the companies they act for, while brokers offer the products of a wider number of companies.

Under this section, an insurance agent can only hold a maximum of four appointments from life assurance companies and four from non-life or general companies. A person who wants to act as a broker must have a minimum of five appointments from life companies if he/she wants to transact life insurance business and a minimum of five appointments from non-life companies if he/she wishes to transact general business.

The section was not immediately implemented when the Act became law in order to give the agents time to adjust. Mr Treacy said the time was now right. "This will hopefully go some way towards creating conditions under which member of the public seeking insurance will be in no doubt as to the kind of service they can expect from the particular intermediary with which they are dealing," Mr Treacy said.