UK GI brokers are paying far higher fees than those in the EU, says Biba
Biba has told the Treasury that UK general insurance brokers are paying far higher regulatory fees than their counterparts in Europe.
It is part of the association’s response to the Treasury’s consultation paper on its proposed shake-up of the financial services regulatory regime, under which the FSA will be abolished and replaced by two new agencies, the Consumer Protection and Markets Authority (CPMA) and the Prudential Regulation Authority.
It said: “The regulatory fees paid by insurance intermediaries in the UK dwarfs those paid anywhere else on mainland Europe.”
Biba adds that what it describes as an “unfair burden” on UK brokers is being fuelled by recent hikes in the Financial Services Compensation Scheme (FSCS) levy, which the Insurance Times Fair Fees campaign is fighting to curb.
On the future of the FSCS, Biba’s response says GI brokers should only be liable for compensation costs arising out of the failure of other intermediaries whose primary activity is GI intermediation.
The response also raises concerns over the government’s commitment that the CPMA should be a consumer champion.
“We believe there is an irreconcilable tension in the CPMA being ‘on the side’ of the consumer while simultaneously policing good behaviour within markets,” it says.