BIBA In FSA Frustration

by Stewart Douglas

Story link: BIBA In FSA Frustration

The British Insurance Broker Association has today declared its anger following the publication of the Financial Service Authority’s recent study into the way in which commercial insurance is sold and operated in the UK after its submission to the authority previously on the issue at hand.

The leading brokerage representative body has announced today that it is frustrated following the results of the FSA’s investigation into transparency in the commercial insurance industry, having previously discussed its own findings that transparency had increased in the market, which was replicated in the culmination of the two-year review by the Financial Services Authority.

Having already invested its own efforts and funds into improving financial transparency and dealing with conflicts of interest with its entire membership, BIBA has today expressed its frustrations at the length and nature of the investigation by the Financial Services Authority through executive Eric Galbraith, particularly when the results of the study turned up expected results.

Much of the hard feeling from the investigations has arisen from what some members of the industry see as a shifting emphasis away from protection consumer buyers to protecting professional buyers, which in the eyes of BIBA could be better placed in ensuring selling practices within the consumer insurance market.

“The FSA began this process nearly two years ago and we are frustrated that even after a forensic review which proved that the costs of mandatory disclosure fall disproportionately on smaller firms and exceed the benefits of disclosure, the FSA is still continuing to spend valuable time and resources on this matter. We believe these resources would be better spent on other issues.”

The FSA published the findings of its investigation today into the commercial insurance market, advising that there has indeed been an increase in transparency in the way in which lines are sold to commercial buyers.