FCA should regulate to separate brokers, argues Galbraith

Biba has written to the chancellor, George Osborne, to urge the government not to raise insurance premium tax (IPT) in the budget this year and to better recognise the value of insurance brokers.

IPT is currently at 6%, and the 2012 budget will be announced on 21 March.

Biba chief executive Eric Galbraith also said that the government should avoid adding additional insurance costs to customers when income and business margins are tight.

In the letter, Galbraith said the value of insurance brokers was being eroded through “inappropriate, disproportionate and costly regulation”, which was also hitting consumers.

Galbraith said the incoming Financial Conduct Authority should regulate to recognise the difference between banks, insurers and general insurance brokers.

Galbraith welcomed proposed action by government on signposting, which costs government very little but that would help individuals who might otherwise struggle to find suitable insurance protection.