The British Insurance Brokers’ Association (BIBA) has appointed Deloittes to conduct a strategic review, and has warned brokers about political pressure in Europe for mandatory disclosure.
Addressing members at BIBA 2012, Eric Galbraith, BIBA Chief Executive also called for insurers to support unconditional risk transfer and revealed that BIBA has appointed consultants and lawyers to find a solution to the unfair structure of the Financial Services Compensation Scheme (FSCS).
Opening the conference, Galbraith said that BIBA must continue to adapt and improve in order to be a leading UK trade association in the 21st Century and that a strategic review follows the IIB merger and a full membership survey.
He said that although 95% of members are satisfied with BIBA, that his challenge is to move the 42% of satisfied members to join those 54% who are very or extremely satisfied.
Galbraith then warned brokers about pressure on remuneration transparency saying “European political interference in the remuneration system could be a by product of the over zealous application of investment type rules into the general insurance sector.”
The warning comes despite UK support from Treasury, the Financial Services Authority and BIBA for disclosure upon request, and an encouraging cost benefit analysis from the European Commission.
Turning to UK regulation, Galbraith called on insurers to work with BIBA to develop a market agreement on unconditional risk transfer to address changes to client money rules and a growing focus from the regulator on premium handling.
Galbraith also called on the FSA to get its review of the unfair FSCS funding model underway and announced that BIBA has appointed consultants and lawyers to help with its representation. Whilst acknowledging that there is no easy FSCS solution, Galbraith said that all options need to be considered.
Galbraith welcomed IIB members into the BIBA family and said a special thank you to Barbara Bradshaw, former IIB Chief Executive, for helping to make the merger between the two organisations a successful and smooth transition.
BIBA’s conference and exhibition is being held in Manchester Central on 16 and 17 May and is free to all BIBA members.
A copy of the full address can be downloaded here.
