Broker group warns rising regulation costs threaten small firms
The British Insurance Brokers’ Association (BIBA) is requesting that the Financial Conduct Authority prioritise more cost-efficient supervision after a 70% rise in costs for small brokerages. The trading body cited research from London Economics, stating that small insurance brokers’ cost of compliance with regulation had increased from 4% to 6.8%, and that one in seven employees in smaller companies work exclusively on regulation-related work. BIBA has shown concern that regulation has accumulated adversely, and has asked the FCA to prioritise adequate supervision over change.

Trade body raises concerns about the burden of regulation on smaller brokers in its 2017 manifesto.

The British Insurance Brokers' Association (Biba) has called for the Financial Conduct Authority (FCA) to prioritise cost-effective supervision following a 70% increase in regulation costs for small brokers.

The trade body stated that new research conducted by London Economics has shown that in the last three years the cost of compliance for small general insurance brokers has increased from 4% to 6.8% of income.

The statistics, which were launched in Biba's 2017 Manifesto at the Houses of