Trade body targets 'disproportionate' regulation costs.
The British Insurance Brokers' Association (Biba) has launched its 2014 manifesto 'Delivering for customers'.
The publication includes new regulation research which demonstrates that insurance brokers in the UK have the most expensive regulatory regime in the world, with regulatory fees and levies costing more than five times that of those in Japan, France and Germany.
The research also revealed that the Financial Services Compensation Scheme’s (FSCS) fees are negatively impacting brokers, with 53% stating that they have either delayed or cut investment and 40% reporting a cut in expansion.
Disadvantage
Steve White, Biba CEO, said: “Having the most expensive fees and levies in the world puts UK brokers at a disadvantage and is disproportionate to the low risks that they pose to the regulator’s objectives. Our new manifesto outlines our calls for action to tackle this.
"We will work with the Financial Conduct Authority on the review of its funding to find a more equitable system and will continue to fight for a fairer separate sub-class within the FSCS for pure insurance brokers.”
Other key issues raised in the manifesto include access to suitable insurance protection, supporting SMEs and improving public understanding and enhancing the customer experience of the claims process.
Year of delivery
White added: “This year is a year of delivery for the government and in this document we set out our campaigning issues for 2014.
“We outline where more can be done to help consumers and their families, support businesses that provide vital employment and help the insurance industry itself – which plays such a critical role in driving growth.”
He continued: “The manifesto which was compiled following extensive consultation with members is our calling card to engage relevant stakeholders.
“It ensures that we are at the heart of representing brokers on the issues that matter most to them. It allows us to quickly and concisely deliver our messages - it also emphasises the importance of general insurance brokers to the UK economy."
The publication was launched at a reception in the Houses of Parliament, hosted by Jonathan Evans MP, chair of the All Party Parliamentary Group on insurance and financial services.
