BIBA Lauds FCA’s Report On Brokers’ Market Study

Edet Udoh

The British Insurance Brokers’ Association (BIBA) has welcomed the move by the Financial Conduct Authority (FCA) to issue a final report on the wholesale insurance broker market.

Steve White, BIBA Chief Executive said: “The fact that the FCA closed this assessment at an unprecedented early stage is a welcome step and validates our view that the wholesale insurance market is a highly competitive place. It is also welcome that the FCA intends to deal with any follow up matters on a business as usual supervisory-led basis.

“There are many positives in the report and our members will be pleased to see that the regulator recognises that the sector meets client demands successfully. We have regularly asserted that this sector provides customers with broad cover, competitive premiums quality paper and a full range of services that clients appreciate. The positive nature of this report reinforces this.”

Moving forward BIBA will work closely and constructively with the FCA and other members on any matters arising.

In another development, BIBA welcomes the granting of Royal Assent that will bring the Counter-Terrorism and Border Security Act into UK law.

The new Act will allow Pool Re to provide, for the first time, insurance cover for businesses that suffer losses as a result of acts of terrorism even though their own premises have not been physically damaged.

Graeme Trudgill, BIBA Executive Director said: “The changing nature of the risk terrorism over recent years highlighted the need for reform in regard to terrorism cover for business interruption insurance. This legislation is something BIBA has campaigned for with the support of our members, Pool Re itself and Members of Parliament including Neil Coyle MP whose constituency includes Borough Market which was badly affected by an attack in 2017.”

The changes contained in the Act will help businesses and increase resilience.

Trudgill concluded “The changing nature of terrorism is leaving businesses exposed. This new Act is good news for all businesses.  We also recognise the need to encourage more small businesses to buy any kind of terrorism cover as fewer than 3% of SMEs take up any cover at all and we will in conjunction with Pool Re be delivering a guide to help businesses understand their risks and helping brokers to access insurance for their clients.”