’Biba members are committed to providing fair value to the customers they serve,’ says chief executive 

Biba has launched a new fair value assesment framework for members after the FCA said it would introduce new multi-occupancy buildings reforms following a review of the sector.

Last month (29 September 2023), the FCA announced it would force insurance firms to act in leaseholders’ best interests from 1 January 2024.

It came after the regulator revealed in April 2023 that broker remuneration for insurance of multiple-occupancy residential buildings rose over a three year period.

A statement released yesterday (18 October 2023) said Biba’s new framework would help brokers implement or refine their own fair value models for customers and operating models.

“Biba members are committed to providing fair value to the customers they serve, as well as the new policy stakeholders created in relation to multi-occupancy properties, reinforcing the core principle that the broker is the agent of the customer and acts in their best interest,” Biba chief executive Graeme Trudgill said.

“The new fair value assessment framework will help our members to demonstrate the value they provide to customers and it can be applied by member firms of all different sizes.”

’Excellent engagement’

The framework, which was created by economics and finance consultancy Oxera, is available to members on Biba’s website.

The association will also host a webinar later this month (26 October 2023) to provide brokers with a detailed overview of it.

Reinder Van Dijk, partner at Oxera, said: “Oxera was delighted to partner with Biba to produce this fair value assessment framework.

”It has been a process with excellent engagement from many Biba members along the way. The end product is a richer tool which members can use to ask the relevant questions in a structured way, regardless of the size or business model of the firm or the particular propositions they deliver.

“The framework helps firms define the space within which fairness is achieved and, where necessary, identify the steps so that fair value will be delivered.”