BIBA responds to FCA add-on market study

12th March 2014

The British Insurance Brokers’ Association (BIBA) has called the Financial Conduct Authority’s (FCA) suggested remedies to its market investigation into add-ons a sensible first step.

BIBA believes that the products within the review offer valuable cover and that the suggested remedies will go some way towards providing a more level playing field for professional insurance brokers and protecting customers.

The suggested remedy for gap cover will mostly impact secondary sellers such as motor traders who sell these products at point of sale.  It will provide customers with a level of protection more akin to the protection that they get when using a broker.

David Sparkes, BIBA’s Compliance & Training Manager, who attended the workshop at the FCA on the investigation, said: “The suggested remedies seem sensible first thoughts towards improving customer protection.”

However, BIBA has emphasised that the suggested remedies for price comparison websites will need to be taken forward with close consideration of the FCA’s thematic review into price comparison websites to ensure a consistent approach.

BIBA will now informally consult with its members on the paper and await further discussions to see how the suggestion of publishing claims ratios will develop and will be used in practice to ensure it is a fair reflection of performance. 

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Notes to editors

1. For further information please contact:

BIBA press office:
Leighann Forsyth, Head of Communications
020 7397 0223
forsythl@biba.org.uk 
 

2. About 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 just under 2,000 regulated firms having merged with the Institute of Insurance Brokers (IIB) in November 2011.

General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff.

53% of all general insurance is sold by an insurance broker and they arrange 81% of all commercial insurance business.

Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 400,000 people a year to access insurance protection through it’s Find a Broker service, both online and via the telephone.

BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.   BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards.