The British Insurance Brokers’ Association (BIBA) wants risk management and insurance protection to be recognised in next week’s Budget.
It believes such an approach would assist growth and business resilience.
In its submission to the Chancellor, Eric Galbraith, BIBA’s chief executive highlighted the value of general insurance brokers in helping both individuals and businesses protect themselves through good risk management and insurance protection.
Galbraith stated that this value is being eroded through inappropriate, disproportionate and costly regulation which impacts both the general insurance broker and their customer. On the change of regulation to the Financial Conduct Authority (FCA), Galbraith said that this was the opportunity to create the right regulation and to recognise the difference between banks, insurers, and general insurance brokers.
In the Budget submission, Galbraith said the failure of credit intermediaries has led to a 50-fold increase in general insurance brokers Financial Services Compensation Scheme (FSCS) levies. Galbraith has called for the FSA to “urgently progress”” its review of what BIBA regards as the fundamentally flawed funding of the FSCS to ensure that general insurance brokers are not paying for the mistakes of others.