Insurance Marketplace Standards Association

What Does Insurance Marketplace Standards Association Mean?

The Insurance Marketplace Standards Association (IMSA) was a trade association established in 1996 to address market confidence issues within the industry at that time. Its membership was voluntary and consisted of individuals from the insurance sector.

It has since been replaced by The Compliance and Ethics Forum for Life Insurers.

Insuranceopedia Explains Insurance Marketplace Standards Association

The insurance industry faced significant challenges in 1996, with many people losing trust in most insurance companies, leading to a decline in applications.

In response, Congress passed the Health Coverage Portability and Accountability Act, which introduced special enrollment provisions and made changes to the continuity of insurance in the workplace.

Meanwhile, a group of industry professionals established the Insurance Marketplace Standards Association (IMSA) to elevate ethical standards within the insurance sector and help restore public trust in the industry. Many of the ethics rules IMSA helped put in place are still used as benchmarks today when comparing the best life insurance companies.

IMSA was later replaced by the Compliance and Ethics Forum for Life Insurers (CEFLI), an organization that continues to address similar concerns. CEFLI’s ongoing work helps consumers feel more secure when it’s time to choose the right life insurance policy.