BIBA CEO, Graeme Trudgill, appeared in front of the House of Lords Financial Services Regulation Committee yesterday, giving a detailed account of the challenges and opportunities facing the British insurance market – and the vital role insurance brokers play in delivering good customer outcomes.
Graeme opened by reaffirming that while the insurance market works well for most customers, we need to understand where and how claims acceptance rates can improve through improved use of data. He warned that the growing dominance of price‑led online sales risks widening the protection gap, as some lower‑priced policies achieve their cost by stripping out cover. With most consumers now buying without advice, he stressed the importance of understanding which sales channels are driving the majority of claim rejections, and welcomed the FCA’s work in this area.
Regulation and remuneration
He highlighted BIBA’s long‑standing support for effective, proportionate regulation, calling for clearer identification of the causes of poor outcomes, simpler documentation, and improved online customer journeys. “We want customers to be able to make informed decisions,” he said, emphasising the need to use plain English and language suitable for a lower reading age in both the sales process and policy documents. Similarly he advocated for reducing the amount of paperwork sent to consumers – too much information kills information. Sentiments central to the two targeted improvements BIBA is pushing for in the Financial Services and Markets Bill currently going through Parliament.
Graeme explained to the Committee Members how brokers are remunerated, the value of commission models for consumers, and the extensive support brokers provide during claims – from helping travellers in overseas medical emergencies to coordinating with loss adjusters after floods. This support, he reminded the Committee, is part of the broker’s role and normally comes at no additional cost to personal lines customers.
Societal value
He also spoke about the wider societal value of brokers, emphasising their role in supporting vulnerable customers, improving financial inclusion, and ensuring people with non‑standard or complex needs can access suitable insurance. Further, he highlighted brokers’ work in flood‑risk areas, for older drivers and travellers, and for people with serious medical conditions seeking life or travel insurance. Graeme noted that BIBA’s Find Insurance Service handles over 400,000 enquiries a year, demonstrating the public’s reliance on broker expertise. Members of the Committee responded positively, with several peers acknowledging that many consumers are unaware of the breadth of support brokers provide. They welcomed BIBA’s new Ben the Broker campaign and agreed that greater public awareness of brokers’ services would help improve outcomes.
On regulation, Graeme welcomed the Consumer Duty, noting that brokers have always acted in the best interests of their clients. However, he cautioned that some of the processes around evidencing fair value have become overly burdensome for brokers’, and BIBA is working with the FCA and other bodies to streamline them. He raised concerns about the FCA’s blanket intervention on GAP insurance, and pushed for the FCA to publish data to show which distribution channels are causing the most complaints so that the industry can work to rectify these.
Graeme also spoke about BIBA’s leadership in financial inclusion, highlighting signposting agreements for older people, support for customers with serious medical conditions, and the organisation’s long‑standing work with government committees on inclusion. He highlighted the work of the Money and Pensions Service which helps promote these signposting services.
Next steps
Looking ahead, Graeme urged HM Treasury to encourage the FCA to deepen its work on claims rejections by sales channel, to review the usefulness of the Insurance Product Information Document (IPID), and ensure a level regulatory playing field in travel insurance, where travel agents offering connected insurance sales currently operate under different requirements.
He closed by emphasising that the insurance broking sector is healthy, growing, and essential – particularly for vulnerable customers, non‑standard risks, and specialist properties. Many brands on comparison sites are broker‑backed, demonstrating the sector’s adaptability and continued relevance.
BIBA will continue to work with the House of Lords Financial Services Regulation Committee on their Regulation of the consumer insurance market inquiry. We look forward to reading the report which they will write after the sessions have completed, and the Government’s response, expected early next year.
You can:
Watch a recording of the session here.
Read Graeme’s Linked In post here.
Members can access our written submission to the inquiry here.
