FullCircl Comments on the BIBA 2025 Manifesto

On Wednesday 15^th January BIBA launched their 2025 Manifesto at the houses of parliament.

The key theme in 2025 is “Partnering to deliver value” and as a BIBA Facility provider, we couldn’t agree more!

The Critical Role of Insurance in the UK Economy

Graeme Trudgill, BIBA's CEO, calls on the government to 'close the protection gap,' particularly in areas like flooding and cyber risks. He also reaffirms BIBA's commitment to encouraging young people to pursue careers in broking, a cause I am deeply passionate about, having begun my own journey at 18 in personal lines broking, where I gained invaluable skills in customer service, dedication, and the value of hard work

Insurance Broking offers varied and fascinating opportunities, as a front-line account executive I got to experience the inner workings of multiple businesses and industries; from understanding the health and safety of a local newsagent to the legal challenges faced by national newspapers, from a local car dealership to seeing how Jaguar Land Rover automate their production process, and from multiple trades peoples risk management to the country's largest brick manufacturer.  

There are so many other roles available with insurance, whether that’s working with data, financial and administrative roles, or claims handling and it's great to see BIBA's continued commitment in promoting the sector.

The manifesto talks heavily about the value of a broker and why companies and individuals should use a broker. I am a strong believer that the UK economy needs businesses to take risks to grow and insurance enables them to take risks, where a broker adds real value, is acting as a trusted advisor, uncovering exposures that businesses don’t realise they have and supporting their growth plans – you wouldn’t prepare your annual accounts without an accountant, you wouldn’t go to court without a lawyer, so why would you risk the future of your business, the security of your employees or even your two most valuable assets – your homes and cars, without taking advice from a professional?  

Navigating Regulatory Challenges and Future Opportunities

However, I would like to see more emphasis on “Chartered” status, encouraging that level of professional qualification, that trusted mark, to be more universally applied – a strong relationship between BIBA and the CII would really strengthen the sector and its reputation.

Regulation is also a key theme, understandably with the burden placed upon brokers with new regulations, including Consumer Duty which has had a wider impact on the insurance sector than the rest of the financial services industry, which is why I am pleased to see BIBA’s call to action to revise the scope within the insurance sector.

Similar with Fair-Value assessment, the significant burden of work this has added to Brokers has reduced availability of products and services for the most vulnerable members of society. One client of ours informed me that they were no longer offering Mobility scooter insurance because they didn’t sell enough polices to cover the administrative costs of Fair-value assessment; while this is obviously not the FCAs intention, it is clear the requirements need refinement, and I am pleased to see BIBA challenging the FCA.

Unfortunately, many brokers question the FCAs knowledge of the broker market works and the value it brings, shown through many knee-jerk reactions, for example the response to GAP insurance. I would like to see more pressure on the FCA, via the Financial Services and Market Bill, to see them held to account over their secondary objective to drive growth and the competitiveness of the UK market as a global player.

BIBA have also committed to work with the Government and the FCA to raise awareness of the benefits of the commission model. In what other sector can you gain advice from multiple specialists to ensure you are getting the right product, at the right price, with the best terms without having to pay consultancy fees? Removing the commission model would decrease the protection and support British businesses and individuals receive – it is fantastic to see this ongoing commitment!

The growing commercial insurance gap is obviously a major concern for the economy at large, businesses choosing to cut back on cover to save money in the short-term is short-sighted. This leaves businesses exposed to losses they may not be able to recover from, putting jobs at risk. I am pleased to see BIBA's continued support for Premium Finance, while the FCA sees this as increased cost for the most vulnerable, I disagree and believe it continues to support them with a low-cost module to provide them with continued access. I praise BIBA for challenging the government to reduce IPT from 12 to 10%, unfortunately I can’t see the adjustment being made and  am fearful of continued increases.

Overall, the Manifesto is a continuation of the incredible work BIBA do supporting the sector, their commitment to insurance broking is unwavering and the messaging is strong. However, I would have liked to see stronger commitment to technology and innovation, encouraging the sector to modernise and remain competitive on a global level. Blueprint II is making major strides at Lloyds, but the broking sector has already made significant progress, while there is more to be done – we should be celebrating the successes.

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