Brokers are looking to sell up as FSA regulation and the softening market starts to bite into profits, revealed a broker survey conducted by Mazars and Biba.
It revealed a growing concern over the cost of regulation and its potential impact on profits, said Mazars. 67% of brokers surveyed said they now considered the amount of work required to satisfy the regulations as “too much”.
Over 85% of respondents said they thought compliance would have a negative impact on their profit for the next financial year, with over half (54%) stating that the cost of compliance was higher than they had anticipated.
But the survey did reveal some positive views on the introduction of regulation. Mazars said 46% of respondents believed the impact on the industry would be positive, compared with 30% who said it would have a negative impact.
The survey also revealed that 95% of respondents said they thought the number of brokers in the UK would decline during the next 12 months.
The full Mazars Insurance Brokers Survey Report can be downloaded www.mazars.com/news/pdf/mibsp_report2003.pdf
