Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 26th of September 2018
March 22, 2011

BIBA campaigns for fresh approach to broker regulation

by Gill Montia

Story link: BIBA campaigns for fresh approach to broker regulation

BIBA campaigns for fresh approach to broker regulation

The British Insurance Brokers’ Association (BIBA) is calling for future broker regulation to focus on the “limited” risks that brokers actually pose in the financial sector and to the wider economy.

According to BIBA research, regulation costs are currently three-times higher than the next most expensive European state.

The point was illustrated by the Association at an audience with MPs, civil servants, Lords and industry members in the House of Commons yesterday, when chief executive, Eric Galbraith, argued for a fresh approach from the soon to be established Financial Conduct Authority.

According to Mr Galbraith, the only two significant risks insurance brokers pose are the potential for low-quality advice, resulting in mis-selling, and the potential for loss of client money.

BIBA believes that this should be the focus of new regulation, which should also note that the direct and indirect contribution of the general insurance intermediary sector to GDP is 1%, the equivalent to much higher profile sectors, such as the agricultural sector.

 

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