Blog from Peter Blanc on thoughts from the Large Brokers Advisory Board – BIBA
20th April 2017
As you are probably aware part of BIBA’s structure includes member Advisory Boards to help shape the BIBA agenda. There are a number of these forums and I’m lucky enough to be Chair of the Large Brokers Advisory Board(LBAB).
We meet quarterly and our last meeting was held in the middle of February and the agenda was broad. We discussed; the EU exit, the BIBA manifesto, BIBA’s software house resilience review, insurance premium tax, an update on the BIBA litmus test ( to help brokers to carry out financial analysis of unrated insurers), gender pay gap reporting, Foreign Account Tax Compliance Act requirements (FATCA) and, of course, the hot topic was the Ogden discount rate. We also debated the Senior Managers Certification Regime (SMCR) – all told, a very productive couple of hours.
LBAB draws its members from several different parts of the broking community. Large personal lines players are represented along with larger commercial brokers. The interests of our members is often completely aligned with the other BIBA advisory boards but occasionally there is a divergence – the regulatory burden tends to fall more heavily on the larger brokers and this, in particular, is a topic that is always on our agenda. We are able to make suggestions to the BIBA Executive about areas where we would like BIBA to get involved and some of LBAB’s output has resulted in BIBA completing the challenge to help members carry out due diligence when using unrated insurers and creating a way to help members to assess the ability of their software house to respond to a disaster. We have also been able to provide input into BIBA’ s very frank and open discussions with both the FCA and the ABI.
All of the advisory boards are used to canvass opinion from members on all relevant topical matters. Issues affecting insurance brokers seem to arise on an almost daily basis and it’s through some great teamwork from BIBA its advisory boards and committees that all the various consultations and changes are kept on the radar and acted on as necessary. This work broadly goes unnoticed by many members but I can say, from the point of view of someone seeing the work that goes into representing members interests, it really brings value to the table.
So what’s next on the agenda?
Clearly the obvious issues are Brexit, passporting and continuing to ensure Mutual Market Access. We will also be working with BIBA to ensure that the government do not view Insurance Premium Tax as a cash cow to be milked on an ever increasing basis. We hope to be able to work with the FCA on some really crucial matters such as improving communications to customers, helping to ensure that advice is recognised as a vital factor in the insurance supply chain, keeping the cost of regulation to a proportionate and sensible level. And of course working with the BIBA Insurance Brokers’ Standards Committee on the never-ending drive to improve standards across the profession.
And, along the way, we’ll just have to deal with curveballs like the Ogden discount rate as and when they arrive!
Group Chief Executive Officer
Aston Scott Group