Biba said it was anxious that Eliot Spitzer's investigation into US insurers was damaging the reputation of the UK market.
It said despite there being no evidence of a UK investigation into anti-competitive practices, “irresponsible and unjustified speculation” had
provoked fears that the UK insurance market could face similar charges.
Biba said adequate systems were in place to ensure brokers and intermediaries were open and fair with their customers, making an investigation was unnecessary.
It said it was “particularly disappointed” with recent comments from the Association of Insurance and Risk Managers (Airmic) calling for the FSA to investigate the practice of contingent commissions - remuneration paid to brokers by insurers for volumes or other services provided.
Biba chief executive Eric Galbraith said: “Almost all of Airmic members operate on a fee basis and it is inconceivable that they do not fully understand their relationship with their brokers.”
Biba insisted that the relationship between brokers or intermediaries and their customers was strong.
It said it believed the industry was capable of reviewing procedures and taking whatever action was necessary in order to maintain trust and confidence with customers.
