The British Insurance Brokers Association (BIBA) has said that more recognition should be given to the value insurance brokers bring to UK plc, and that the language used by the government when discussing the financial crisis is a challenge facing the insurance sector.
A BIBA source said that the use of the term ‘financial services crisis’ paints the insurance sector in a bad light.
In his address at the reception marking the merger between BIBA and the Institute of Insurance Brokers (IIB), BIBA CEO Eric Galbraith said that the insurance sector was not responsible for the financial crisis and its reputation with clients remains positive.
Galbraith highlighted BIBA’s key regulation issues saying that since launching their research into the future of regulation it has opened a dialogue with the regulator to achieve more appropriate, proportionate and cost effective regulation.
Client money and adequate resources were highlighted as “crucial” issues that require work from the sector and the regulator to achieve better regulation.
Turning to the Financial Services Compensation Scheme (FSCS), Galbraith said that insurers must take more responsibility if they are prepared to have their products sold by non-professionals and said that “the regulator must be quicker in future to both spot and take action on issues of wider implications, such as PPI.”
Finally, on the topic of the merger with the IIB, Galbraith said that for members, staff, parliamentarians and all other stakeholders, they would aim to make the transition period as quick and as smooth as possible.