British Insurance Brokers’ Association (BIBA) chief executive Steve White congratulated insurance brokers at the BIBA Conference 2022 in Manchester today for their actions in helping to fill gaps in protection during a period of prolonged crisis.
In his speech opening the BIBA Conference 2022 at Manchester Central, after the event’s three-year moratorium due to COVID-19, White acknowledged that while the world had changed in that time, so too had the insurance industry and the risks it manages.
He congratulated delegates on “stepping in to fill gaps [in protection]on cladded buildings, on COVID, on flood risk, on terrorism and on cyber insurance”.
Highlighting the clear and present danger of cyber crime, White added: “The work you [brokers]are all doing to provide standalone cyber cover for businesses in your communities is hugely important. We are and can continue to play a positive role in helping others to sensibly manage their cyber risks.”
Alongside praise for the work that insurance brokers do to help people and businesses, the association’s chief executive went on to lambast the lack of fairness in the funding model of the Financial Services Compensation Scheme.
He called for united action, stating: “We never mind being leaders, but we must not be left paying over the odds for the failures of others. When the FCA [Financial Conduct Authority] produces its consultation paper on possible new approaches to funding compensation, I encourage you all to make your voices heard and respond.”
“We will commit time and resources to make a strong submission on your behalf. You are driven by a sense of what is right and wrong and the need for fairness. It is only right that we must push back when we feel those values are not being applied to us as an industry.”
“We must never be shy to have our voice heard.”
In a slight change of tack, White turned his attention to the amount of revenue raised by insurance premium tax (IPT), despite the pandemic and recent economic shocks.
He highlighted that: “IPT generated £6.3 billion in the last 12 months and we believe there is a strong case to be made to reduce the headline rate of 12% to 10%.”
Commenting on telematics-based policies, insurance for cladded buildings and cyber cover, White asked: “Why would we want to have additional costs slapped on something we should be encouraging? Given what that sector has been through in recent years it [removing or reducing IPT]would be a fillip to help it bounce back.”
He ended his BIBA Conference 2022 speech by reminding brokers what they have done to help those struggling to find insurance and concluded: “It may not be an easy year given the environment you are operating in but I have no doubt your fundamentals will allow you to become even stronger and ensure our customers continue to get the support they, at times, desperately need.”
“You manage risk, but you do it in a way that seeks solutions not barriers. That is a very good thing—never change.”