In the recently unveiled BIBA 2025 Manifesto, FullCircl, a prominent voice in the insurance broking sector, underscores the critical role of insurance in bolstering the UK economy.
FullCircl’s engagement reflects a deep commitment to bridging the protection gap, notably in pressing areas like flooding and cyber risks. BIBA’s CEO, Graeme Trudgill, emphasized the importance of insurance brokers, stating, “Insurance broking offers varied and fascinating opportunities.” Trudgill’s career itself, which began in personal lines broking, exemplifies the diverse skills and insights gained through frontline roles in insurance.
Trudgill’s journey highlights the sector’s broad scope, from local businesses to major manufacturers like Jaguar Land Rover, showcasing how insurance brokers deeply understand various industries’ challenges and needs. He advocates strongly for the use of brokers, likening their necessity to that of accountants or lawyers when making critical business decisions. This advocacy is rooted in the belief that taking calculated risks is essential for business growth, with brokers playing a pivotal role in advising and protecting assets.
The manifesto also delves into regulatory challenges and the future of the broking profession, particularly stressing the importance of the “Chartered” status to elevate professional standards across the industry. Trudgill voices a strong relationship between BIBA and the Chartered Insurance Institute (CII) as vital for reinforcing the sector’s integrity and public confidence.
However, the regulatory landscape presents hurdles. New mandates like Consumer Duty disproportionately impact insurance compared to other financial services, prompting BIBA to seek regulatory adjustments. The complexities of Fair-Value assessment have led some brokers to reduce offerings, such as Mobility scooter insurance, due to high compliance costs—a situation BIBA is keen to address with the Financial Conduct Authority (FCA).
Criticism of the FCA’s understanding of the broker market and its reactive policies is rife, with industry voices calling for more accountability through the Financial Services and Market Bill. This would aim to enhance the UK’s stance as a competitive global market. Additionally, BIBA champions the commission model, arguing it allows consumers access to expert advice without direct fees, a system they believe should be preserved to protect and support both businesses and individuals.
Despite these challenges, BIBA remains committed to promoting Premium Finance as a viable solution for those at financial risk, contradicting the FCA’s view that it represents an undue burden. They also advocate for a reduction in Insurance Premium Tax (IPT) from 12% to 10% to alleviate financial pressures, although there is skepticism about this change being implemented.
In conclusion, while BIBA’s manifesto reiterates its steadfast dedication to the insurance broking sector and addresses significant economic and regulatory challenges, it also calls for greater commitment to innovation and technology to keep pace with global market demands.
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