I’m back in harness and the suntan is fading fast, unlike the pain in my two fingers which I managed to break while away. I come back to changes at a senior level at AXA, more examples of confused multi-channel distribution, unfounded criticisms of BIBA’s work with the FSA and a report from the OFT which if not read properly paints a pretty damning picture about complaints in the insurance industry. The list could go on.

We all have distractions from the main task at hand and to stay focused is essential. BIBA’s focus for the moment is on the FSA’s discussion paper 08/2 on information transparency in the commercial market (and I hope it is high up on the agenda for every firm). I’m pleased to see that some BIBA members have already responded to our call and have written to the FSA with their views on this particular paper. With two months left to go before the closing date for submissions on the paper we are determined to keep the pressure up to resolve this issue once and for all. We also have the BIBA conference in Glasgow looming large on the horizon. I’ll see you there; with any luck I’ll be able to shake your hand!

This blog was published on the Insurance Times website on 16/4/08

BIBA has already highlighted issues with aggregators/comparison web sites but there remains another challenge for our sector. We continually come across individuals and businesses where it is difficult to obtain cover for them.

Interestingly we recently had a consumer on the phone trying to find a specific type of cover. Even when we had talked them through where on our web page the consumer could find a broker who would be able to help there was a lack of recognition that ‘Find a Broker’ meant access to the cover needed.

Needless to say we will add a few words to our web site to highlight and better direct the individual and business to understand that ‘Find a Broker’ is synonymous with access to the right insurance protection. We are in fact just about to launch our new web pages prior to our annual conference and exhibition at the end of April. This will include a new and more responsive ‘Find a Broker’ section.

So not only do we have organisations inferring that they are comparing the insurance market for the best price when what they are actually comparing is a ‘skinny’ policy wording to achieve the lowest price, but we also have a generation who believe that a better deal is nothing to do with cover, who the actual insurer is providing that cover or even their willingness or ability to pay claims. I have just noticed that one of the better comparison sites now refer to the right cover at the right price.

This mentality is now moving into smaller commercial business not only because of technology and commoditisation but also due to the cost of retention and the impact of regulation on intermediaries. The recent discussion paper (DP08/2) on transparency, disclosure and conflicts of interest in the commercial market from the FSA could also impact how some insurance protection is sold and I have yet to be convinced that the customer is getting the right deal at all.

Many brokers have responded by investment in technology, the formation of underwriting agencies, MGAs or the use of non-advised sales to compete.

BIBA will continue to promote access to the right insurance protection through brokers and to ensure that the regulator and government appreciates the concept that access to insurance does not just mean buying cover at the lowest price.

This blog was published on the Insurance Times website on 9/4/08

Phew, it’s hot here (see last week’s blog). Isn’t technology fantastic, allowing me to keep in touch with the office while I’m thousands of miles away. I might just see if my BlackBerry can float. It would be just my luck if it did.

We’ve not been having much luck with the yacht racing and the idea of regaining my work/life balance is definitely still in the balance.

Still the odd rum cocktail or two makes it all seem worthwhile … now what was I talking about? Technology! I think that was it. Very important on a yacht – tells you where you are and when you will get to your destination. It also lets you know what speed you are doing and what course you need to take plus a whole raft of other information. However, being too dependent on technology at the expense of ignoring human instinct and hard won experience can be dangerous.

At least in a yacht race we can decide where and when to tack, what sails to use, how to avoid the rocks and ride out the storms.

Three years ago the Financial Services Authority set out our regulatory course with its principles and rules. Since then we’ve had a few points on that course to navigate around for example goodwill, the commission disclosure review, ICOB revisions, new funding for the FSCS and contract certainty (the latter added during the race). Unfortunately, rather than allow us to respond to these principles the FSA seems to not only want to alter the course, but also tell us how to navigate it.

An over reliance on technology and rules is not the way forward. Perhaps one day technology will be able to provide advice and manage regulation. Who knows?

This blog was published on the Insurance Times website on 2/4/08