FullCircl Champions BIBA 2025 Manifesto: Advocating for Regulatory Reforms and Technological Innovations

The British Insurance Brokers’ Association (BIBA) has recently launched its 2025 Manifesto titled, “Partnering to Deliver More Value,” at the Houses of Parliament, emphasizing the essential role of insurance in the UK economy. This initiative aims to address significant challenges such as the protection gap in areas including cyber risks and flooding.

Support from Industry Leaders

FullCircl, a prominent BIBA Facility provider, has voiced robust support for the manifesto, particularly regarding its commitment to bridging the protection gap. Graeme Trudgill, BIBA’s CEO, has called on the government to tackle these urgent issues while also promoting career opportunities for emerging professionals in the insurance broking sector.

Diverse Career Paths in Insurance

Ashleigh Gwilliam, director of insurance at FullCircl, shared insights on the variety of career paths available within the insurance industry. His journey began at just 18 in personal lines broking, and he highlighted BIBA’s ongoing efforts to raise awareness about opportunities ranging from risk management to data analysis.

The Role of Insurance Brokers in Economic Growth

A central theme of the manifesto is the vital contribution of insurance brokers to the UK’s economic advancement. Gwilliam emphasized that businesses must take calculated risks to thrive, and insurance provides the necessary support.

• Brokers act as trusted advisors, helping businesses uncover hidden risks.
• They play a role comparable to that of accountants and lawyers in financial and legal contexts.

Advocacy for Professional Standards

Gwilliam advocates for an enhanced focus on achieving “Chartered” status within the industry, suggesting a stronger collaboration between BIBA and the Chartered Insurance Institute (CII). He believes this alignment would elevate the professional standards and credibility of the sector.

Addressing Regulatory Challenges

Regulation is a critical concern, with brokers facing increasing compliance demands. The Consumer Duty regulations have disproportionately impacted the insurance industry compared to other financial services, underscoring the need for targeted reforms. Gwilliam welcomed BIBA’s initiatives to seek regulatory adjustments to alleviate this burden.

Fair-Value Assessment Challenges

The Fair-Value assessment has also emerged as a significant hurdle for brokers, leading to a decrease in product availability for vulnerable clients. Gwilliam cited an example where an insurer stopped offering mobility scooter policies due to compliance costs. He commended BIBA for challenging the Financial Conduct Authority (FCA) to reconsider these requirements.

Concerns Regarding FCA Understanding

Criticism of the FCA goes beyond compliance costs. Many brokers feel the regulator lacks a comprehensive understanding of their market, as seen in abrupt policy changes affecting GAP insurance. Gwilliam believes the FCA should be held accountable under the Financial Services and Markets Bill to ensure that its policies support industry growth and strengthen the UK’s position as a leading global financial hub.

Preserving the Commission Model

BIBA’s manifesto advocates for maintaining the commission model, crucial for insurance distribution. This structure allows businesses to receive expert advice at no extra cost. Gwilliam warned that eliminating this model would compromise protections for both businesses and individuals.

Addressing the Commercial Insurance Gap

The ongoing commercial insurance gap poses significant risks to the economy, with many businesses reducing coverage to save costs, potentially exposing them to catastrophic losses. Gwilliam praised BIBA’s support for Premium Finance as a cost-effective solution for businesses looking to maintain coverage. While the FCA perceives Premium Finance as an added expense, he argues it is essential for accessibility.

Call for Reduction in Insurance Premium Tax

Gwilliam also applauded BIBA’s push for a reduction in Insurance Premium Tax (IPT) from 12% to 10%, although he expressed skepticism about whether the government would implement such a cut.

Fostering Technological Innovation

Overall, Gwilliam views the BIBA 2025 Manifesto as a strong continuation of BIBA’s commitment to the insurance broking sector. However, he noted that while the manifesto effectively champions key industry issues, it could benefit from placing a greater emphasis on technological innovation. Celebrating advancements and promoting further technological development will be crucial for maintaining the UK insurance industry’s global competitiveness.

For more information on the BIBA 2025 Manifesto and its implications for the insurance industry, visit BIBA’s official website.