The British Insurance Brokers’ Association (BIBA) has said that the continuing language used by the government and regulator about the financial crisis is a challenge facing the sector and that more recognition should be given to the value insurance brokers bring to UK plc.

In his address at its parliamentary reception which marked the merger between BIBA and the Institute of Insurance Brokers (IIB), Galbraith said that the insurance sector was not responsible for the financial crisis and its reputation with clients remains very positive.

Galbraith highlighted BIBA’s key regulation issues saying that since launching their research into the future of regulation that it has opened a dialogue with the regulator to achieve more appropriate, proportionate and cost effective regulation.

Client money and Threshold Condition 4 (adequate resources) were highlighted as “crucial” issues that require work from the sector and the regulator to achieve better regulation.

Turning to the Financial Services Compensation Scheme (FSCS), Galbraith said that insurers must take more responsibility if they are prepared to have their products sold by non-professionals and said that “the regulator must be quicker in future to both spot and take action on issues of wider implications, such as PPI.”

Finally on the FSCS, Galbraith called for an end to cross-subsidy, and separation for brokers from those firms whose main business is not insurance intermediation. He outlined that BIBA is working hard to contribute positively to the FSCS review with a constructive, sustainable solution which will provide a viable option for members and the regulator.

Addressing the merger with the IIB, Galbraith said that for members, staff, parliamentarians and all other stakeholders, that they aim to make the transition period as quick and as smooth as possible.

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