BIBA has called for larger commercial customers to be removed from the scope of the Consumer Duty.

Setting out its position in its response to the Financial Conduct Authority’s discussion paper DP24/1 on the regulation of commercial and bespoke insurance business, BIBA said this approach would help reduce the regulatory burden on insurance brokers by removing larger SMEs from scope (many of which are experienced buyers of insurance with some potentially having a professional risk manager). These increased levels of knowledge mean they are less vulnerable to harm.

BIBA said its members are also in agreement over the need to review the definition of a ‘retail customer’. It also raised concerns around the onerous requirements for undertaking product value assessments for commercial clients.

Graeme Trudgill, BIBA chief executive said: “Reducing the scope of the Consumer Duty is one of our most important Manifesto aims and we are delighted that the FCA have consulted on it. This is an opportunity to achieve change and help improve the burden of regulation on members. We are in a position where we think option three would be most beneficial, ensuring that the protection is in place for those who need it.”

---