What is required from regulated firms when dealing with insurers or brokers?

When regulated firms engage with insurers or brokers, it is essential for them to establish that these parties are properly authorised. This requirement ensures that all parties involved in the transaction are operating within the legal and regulatory frameworks set by financial authorities. Authorisation is crucial in the insurance industry as it helps maintain standards of practice, protects consumers, and ensures that the firms participating in the market are subject to oversight.

Working with authorised insurers or brokers means that these entities comply with regulations that govern financial conduct, which include having the necessary licenses and approvals to operate. This practice reduces the risk of fraud and ensures that the financial dealings are transparent and secure. It also provides a level of assurance that the insurer or broker has met the requisite financial and operational standards to conduct business.

The other options, while they may have relevance in different contexts, do not specifically address the regulatory requirement. For instance, operating independently, negotiating better rates, or creating exclusive contracts are more about the firm's strategic or operational choices rather than a regulatory obligation when dealing with insurers or brokers.