PMI
Members of the Association of Medical Insurance Intermediaries (AMII) have voted against a proposal that would allow firms regulated through networks to join its organisation, writes Angela Faherty.
The decision means companies that are members of a network will not qualify for full AMII membership. Instead, they will be eligible for associate membership, which means they have no voting rights and will not be able to sit on AMII's Executive Committee.
The news has come as a blow to the organisation's chairman, Stephen Walker, who hoped a vote in favour of the proposal would help drive up membership numbers and bring new life into the private medical insurance sector.
"Objection to the proposal was based on the assumption that allowing firms that were members of a network to join AMII would somehow tarnish its industry standing. This is pure conjecture. If anything, it would enhance our reputation because we would be opening the door to new blood. The decision is disappointing because I do not feel it is the right one for the Association," he said.
Despite securing a majority vote for the proposal, it was not the two third majority required under AMII's constitution for new laws to take effect. The decision means that from 14 January 2005, firms regulated through a network cannot secure full membership to AMII. It also means existing members that go the network route will be downgraded from full to associate membership.
Despite his obvious disappointment at the outcome, Walker did not rule out revisiting the proposal post Financial Services Authority regulation.
"It was a democratic process and we were just short of the two thirds needed to pass the proposal. That is the end of the matter for now, but there is a possibility that the issue may be brought up again should we find that it is impacting on AMII and its membership," he said.
