Brokers more burdened by regulation than tax
by Gill Montia
Story link: Brokers more burdened by regulation than tax
The British Insurance Brokers’ Association (BIBA) is arguing that the regulatory burden imposed on the UK insurance broking sector is a greater competitive disadvantage than the amount of corporation tax it pays.
Research from BIBA claims the current regime is “disproportionate and inappropriate” with costs for brokers in the UK currently three times higher than the next most expensive EU state.
The Association is therefore calling on the government to ensure that when in place, the Financial Conduct Authority takes corrective action.
BIBA chief executive, Eric Galbraith, explains: “We have succeeded in persuading the policy makers that the insurance sector is not banking.”
He continues: “Now we need to get them to understand that general insurance brokers and intermediaries are not insurers. We are not risk takers, we are risk advisors.”
BIBA member and Aon Ltd chief executive, Robert Brown, confirms: “We work closely with the regulators and have consistently argued that the high cost of regulation for brokers in the UK compared to our counterparts in Europe is evident and puts the UK at a disadvantage.”