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Regulation & Productivity

Home / Current Issues / Regulation & Productivity

The UK financial services industry is regulated by two bodies, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

The PRA is responsible for ensuring that insurance companies are financially secure and can provide an appropriate degree of protection to customers.  The FCA aims to ensure that the financial services industry is run with integrity; that it provides consumers with appropriate products and services and that firms work for the best interests of the customer. Insurance brokers conduct themselves within a framework set out by the FCA.

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Direct Cost of Regulation

BIBA supports an effective system of regulation, especially for sectors that pose a systemic risk. However, research from Charles Rivers Associates concluded that systemic risk does NOT arise from brokers since they do not hold insurance risk on their balance sheets. 

Research from London Economics found that the cost of regulation in the UK is one of the most expensive in the world; far more than in France and Germany for example.

 

When updating this research, it was found that the regulatory cost for small brokers had increased by 70% in a three-year period. This is all compounded by the fact that the FCA no longer has a global competition objective to act as a check and balance on the impact of any new regulation.

Regulatory News

BIBA issues Regulation Updates on a regular basis to alert members to regulatory developments – from the publication of FCA papers to clarity on rule interpretation

 

See all news and updates

Latest Regulation Updates

MP Guide

Helping your constituency with insurance matters

BIBA members have many specialisms and can often help in placing cover for those that fall outside of what is considered a ‘standard risk’.

BIBA helps more than a 250,000 consumers Find a Broker every year and can be found at biba.org.uk, or by calling 0370 950 1790.

See our guide for MP’s here

BIBA Members

Access to full Regulation information

BIBA aims to keep members up to date with important changes to regulatory and compliance matters. our website acts as a repository of information for members, allowing them to access the information they want, when they want it.

View member regulation page

BIBA's calls for action on fair regulation

In October 2017 Government ministers expressed concerns about the productivity of UK firms. BIBA contends that although our sector is productive, our productivity is significantly affected by one of the most burdensome and expensive regulatory systems in the world under the stewardship of the Financial Conduct Authority (FCA).


Find more information in the BIBA 2018 Manifesto

Making Markets Work Well

– For a period of stability in the rate of regulatory change with a pause on the continual influx of new FCA requirements and a focus on proportionate supervision for our low-risk sector.

– For Parliament to introduce a global competition objective for the FCA.

– For Treasury to remove introducers from FCA regulation as per the IDD in line with its consultation.

Transposing EU Directives, Regulations and Rulings

– The only practical solution to this problem is for the European legislative bodies to press ahead with the proposal to delay the application date of the IDD and its delegated Acts until 1 October 2018 to permit their proper implementation. It would better serve the operation of the UK market if the FCA complied with the delay when introducing its rules.

– For the FCA to recognise that the requirements in the Delegated Regulation exceed the requirements in the IDD and that any link with ‘good customer outcomes’ is tenuous at best. As a result, any supervisory judgement of conformity with it should take account of this.

– For the FCA to recognise that the EU legislative bodies have created different directives for the disparate markets and not apply unnecessary investment provisions to the non-investment sector.

 

Transposing EU Directives, Regulations and Rulings

– For the UK Parliament to use the draft Data Protection Bill to derogate the requirements around consent so that they do not inhibit the insurance industry from carrying out its lawful activities in the processing, administration or performance of insurance contracts.

– For the European Commission to include an update within the REFIT of the Motor Insurance Directive that will adapt the definition of a motor vehicle in order to clarify that the Directive only requires compulsory insurance for vehicles ‘used in traffic’ and to exclude motorsport to avoid the unintended consequences of the judgement.

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Whatever type of insurance you need to find, BIBA can connect you with a broker who can help. Please use the search below or call our Find a Broker Service on 0370 950 1790.

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Members of the Armed Forces have particular insurance needs. BIBA members making a commitment under the Covenant and which help meet these needs can be found here

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