Biba asks “why does the general insurance market seem to complicate TOBA matters?”
The British Insurance Brokers’ Association (Biba) has today launched a new, industry-standardised template for Terms of Business Agreements (TOBAs).
Responding to member calls for help to increase efficiencies and reduce frictional costs, BIBA, along with many other industry stakeholders, has produced a voluntary TOBA template which, it says, is “well balanced for both brokers and insurers alike”.
It says the new template will ”revolutionise the process of formal TOBAs in the general insurance marketplace, resulting in less strain on the resources employed in reading, checking and challenging TOBA content to the tune of up to 80 person-hours”.
The template itself consists of a list of standardised definitions of terms which are commonly found in TOBAs, so there is little to no confusion between the two parties. As well as this, it includes a definitive guide on commission rates and responsibilities of both the broker and insurer, among other things in the 36-page document.
Graeme Trudgill, Biba executive director said: “Members have asked us to find a solution to this administrative burden which has most definitely affected their productivity.
“We felt so strongly about this that we made it one of our key manifesto issues for 2018. Our technical team have sought an opinion from many stakeholders and this resulting TOBA template will benefit both insurers and brokers for many years to come.”
Tim Ryan, executive chair of Ryan’s and Biba main board member said: “To increase productivity we need to reduce the frictional cost of doing business. Having dozens of ever so slightly different trading agreements which require continual review by lawyers and regulatory staff is a classic case. I am determined to facilitate a widespread uptake of this new BIBA template.”
Peter Blanc, group chief executive of Aston Lark Group and Biba main board member said: “It is vitally important that brokers can take steps to improve efficiencies and be allowed to concentrate on what they do best – advising clients on their insurance needs.
“This is a giant step forward in allowing our sector to evolve to the needs of the fast-moving digital age we are operating in.”
The template is being rolled out to brokers, insurers, MGAs and networks, and it is available to use straight away.