The British Insurance Brokers’ Association (BIBA) has welcomed the FSCS’ revised broker levies for this year which have been reduced by half since the forecast in January. BIBA has lobbied strongly to have the original unfair forecast reduced, writing formally to the Insurance Minister, John Glen and the CEO of the FCA, Nikhil Rathi highlighting that no other regulatory regime in the world exposes general insurance intermediaries to the failures in other sectors.
BIBA is delighted that the total broker contribution has reduced from £146.8m to £73.8m with the levy for the broking funding class now being £12.9m compared to the forecast of £14.4m, and the broker contribution to the retail pool has reduced significantly to £60.9m from £132.4m.
BIBA CEO Steve White said: “We have always campaigned that insurance brokers are low risk and the FSCS call for 21/22 went beyond the pale with a demand of £146.8m from brokers. The brokers funding class has never breached its cap so the original retail pool contribution was grossly unfair. Today’s announcement levels the playing field but we must continue to demand simpler, better more effective regulation.”
BIBA Executive Director Graeme Trudgill concluded: “We have put a lot of pressure and a lot of very fair thought through arguments to HMT and to the FCA on this and it is very unusual for them to release £96M of reserves, we really welcome today’s action though we still need the model to change long term”
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- 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 staff. General insurance brokers contribute 1% of GDP to the UK economy; they arrange 67% of all general insurance with a premium totalling £65.1bn and 81% 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.