BIBA responds to FCA consultation on regulation of commercial business
BIBA has called for larger commercial customers to be removed from the scope of the Consumer Duty.
BIBA set out its position in its response to the Financial Conduct Authority’s (FCA) discussion paper DP24/1 which sought industry feedback on its regulation of commercial and bespoke insurance business.
BIBA believes that this approach will help reduce the regulatory burden on insurance brokers by removing larger SMEs from scope, many of whom are experienced buyers of insurance with some potentially having a professional risk manager. These increased levels of knowledge mean they are less vulnerable to harm.
In its response, BIBA outlined how members agree that there is a need to review the definition of a ‘retail customer’. BIBA also raised how current requirements to undertake product value assessments for commercial clients is onerous.
Graeme Trudgill, BIBA Chief Executive said: “Reducing the scope of the Consumer Duty is one of our most important Manifesto aims and we are delighted that the FCA have consulted on it. This is an opportunity to achieve change and help improve the burden of regulation on members. We are in a position where we think option three would be most beneficial, ensuring that the protection is in place for those who need it.”
The discussion paper invited feedback on whether the FCA’s rules strike an appropriate balance between safeguarding those customers who require regulatory protections and competitiveness in the commercial general insurance market. The FCA also set out a series of options for firms to consider, of areas where it may be appropriate to reduce regulatory requirements and potentially also the costs on firms.
BIBA believes that these changes will help the FCA demonstrate that it is meeting its new requirements under the growth and competitiveness objective.
Ends
Notes to editors
For further information please contact:
Leighann Forsyth, Deputy Head of Communications
07917 738727
forsythl@biba.org.uk
Privacy
BIBA’s privacy Policy can be viewed here
If you no longer want to receive press releases from BIBA please email the Comms team.
About the British Insurance Brokers’ Association
The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.
BIBA membership includes around 1800 regulated firms, employing more than 100,000 people. General insurance brokers contribute 1% of GDP to the UK economy; they arrange 77% of all general insurance with a premium totalling £105.5bn and 94% of all commercial insurance business. Insurance brokers put their customers’ interests first, providing advice, access to suitable insurance protection and risk management.
BIBA receives hundreds of thousands of enquiries per year to its Find Insurance Services, online and via the telephone, which are directed to insurance broking firms.
BIBA is the voice of the sector advising members, Government, regulators, consumer bodies and other stakeholders on key insurance issues.
The post BIBA responds to FCA consultation on regulation of commercial business appeared first on BIBA.
