Brokers in UK prepare to do battle with FSA

UK insurance brokers’ future are under
threat, warns the British Insurance Brokers Association (BIBA).

The industry body’s concern stems from
invoices received by its members from The Financial Services
Authority for their 2010-11 Financial Compensation Scheme levy
(FCSS) payments.

BIBA CEO Eric Galbraith said brokers are facing
48-fold increases in their FSCS fees from two years ago, and laid
the blame for the increase on mis-selling of payment protection
insurance (PPI).

“The increase in the FSCS levy on
intermediaries is totally unjustified,” Galbraith said.

BIBA has been inundated with calls from members
who are incensed and “ready for a fight,” continued Galbraith.

“The increase in the FSCS levy on
intermediaries is totally unjustified,” he added.

“It is not the failure of insurance brokers
that is causing this massive increase in the cost of
regulation.

“The fault actually lies with the failure of
firms who’s core business is not insurance intermediation and with
the FSA who have consistently failed to adequately police the sale
of this product.”

Galbraith warned that unless BIBA lobbying can
change the structure of the FSCS “many brokers will struggle to
survive”.

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