Galbraith tells insurers to take more responsibility

Eric Galbraith has told insurers that they must take greater responsibility if they are prepared to have their products sold by non-professionals in order to avoid future payment protection insurance-style scandals.  

The sale of PPI products by brokers who do not specialise in general insurance has fuelled the recent explosion in the Financial Services Compensation Scheme (FSCS).

Speaking at a parliamentary reception today to mark the merger between his organisation and the IIB (Institute of Insurance Brokers), the Biba chief executive also said regulators should be quicker in the  future “to both spot and take action on issues of wider implications, such as PPI.”

In addition, Galbraith raised concerns about the language continuing to be used by the government and regulator about the financial crisis, which he described as a challenge to the sector, highlighting client money and Threshold Condition 4 (adequate resources) as “crucial” issues that require work from the sector and the regulator to achieve better regulation..

He told the audience of brokers and MPs that there should be more recognition of the value insurance brokers bring to UK plc.