Archive for January, 2010

BIBA welcomes Government signposting proposals to help customers find insurance

Friday, January 29th, 2010

The British Insurance Brokers’ Association (BIBA) has welcomed the new Policy Statement from the Government’s Equality Office.  Proposed new measures will help ensure that customers can obtain the insurance they require and which is right for them. For example, an older traveller with a medical condition who has experienced some difficulty in finding travel insurance.

 The proposed new laws will make it compulsory for insurance providers who decline to provide cover (e.g. because of a persons age), to refer customers to a more appropriate source, like a specialist insurance broker, or to a signposting system.   BIBA describes ‘signposting’ as a way of helping consumers who are turned down at point of sale (telephone, internet, face to face) to be directed to an independent source of information  that can offer assistance in finding  the relevant insurance cover.

Signposting will greatly benefit customers who may be considered as non standard risks, such as younger drivers.  Currently when these customers are refused cover by an insurer they are left to continue their search alone without knowledge that insurance is available or where to obtain it.   The signposting/referral system will be of particular help with motor and travel insurance as these are the areas identified where some people have difficulty finding an insurance policy.

BIBA has been calling for greater assistance for customers and is delighted that signposting will become compulsory.   BIBA has an established and successful ‘Find a Broker’ helpline and website that already helps customers to find a specialist insurance broker who can provide suitable insurance.  However, BIBA believes there are many more consumers who are refused cover from comparison sites and direct insurers who are unaware of this helpful service and that an insurance broker can insure them.  

Graeme Trudgill, BIBA Technical and Corporate Affairs Executive, said: “There is a solution through insurance brokers who can cover extremely difficult risks. It really is just a case of knowing where to go. This new requirement for signposting, once introduced, will help customers to find the protection they need, otherwise they run the risk of travelling uninsured, we know of some that have even decided not to go on holiday as they could not find insurance.”

Peter Staddon, BIBA Head of Technical Services, added: “BIBA will continue to work with the Government to ensure the appropriate signposting and referral systems are put in place.”

The BIBA find a broker helpline and website is well established and takes more than 340,000 enquires per year from customers who have been signposted from a range of consumer bodies and BIBA hopes that its service will form part of the formal signposting system as it has already proven to assist customers in finding all types of insurance.

BIBA welcomes any signposting solution and can help support it by way of the local rate Find a broker helpline 0870 950 1790 or website at www.biba.org.uk

CASE STUDY

Mrs Ellis needed to find insurance for her daughter’s car which was in France but would be returning to the UK.  Having trawled the internet and spoken to a number of different insurers for nearly three hours she was becoming increasingly frustrated at her lack of progress.   It was important to Mrs Ellis that everything was done correctly and that the correct insurance was put in place.  Fortunately, it was suggested to Mrs Ellis that she call the BIBA Find a Broker helpline, she did and with the help from a BIBA insurance broker, was guided through the process and found a suitable solution.

BIBA weekly update

Friday, January 29th, 2010

Dear Member
 
This week’s top issues:
 

  • Met with HMRC to discuss IPT
    Discussions continue on a potential narrowing of the scope of the legislation, but in the meantime BIBA recommends members continue to deal with the legislation requirements as previously addressed
  • Welcomed Government proposals to introduce signposting – Click here
  • Attended lecture with Mark Hoban MP, Shadow Treasury Minister

 

BIBA has also:

  • Met with three perspective parliamentary candidates to discuss insurance broker issues
  • Met with the FSA to discuss its remit for the FSCS review
  • Responded to DEFRA on flood research
  • Attended the Insurance Institute of London market issues event
  • Met with AIRMIC to discuss current issues
  • Secured a link from the Foreign and Commonwealth Office to the BIBA ‘Find a broker’ website
  • Held its board meeting which included a presentation from the CII on the Professionalism Task Force
  • Held its two London Market Region compliance forums
  • Added new Lloyd’s and Xchanging bulletins to the London Market Region section of the website

For more information on any of these activities, please call the BIBA member helpline on 0844 77 00

BIBA welcomes Government signposting proposals to help customers find insurance

Thursday, January 28th, 2010

The British Insurance Brokers’ Association (BIBA) has welcomed the new Policy Statement from the Government’s Equality Office.  Proposed new measures will help ensure that customers can obtain the insurance they require and which is right for them. For example, an older traveller with a medical condition who has experienced some difficulty in finding travel insurance.

The proposed new laws will make it compulsory for insurance providers who decline to provide cover (e.g. because of a persons age), to refer customers to a more appropriate source, like a specialist insurance broker, or to a signposting system.   BIBA describes ‘signposting’ as a way of helping consumers who are turned down at point of sale (telephone, internet, face to face) to be directed to an independent source of information  that can offer assistance in finding  the relevant insurance cover.

Signposting will greatly benefit customers who may be considered as non standard risks, such as younger drivers.  Currently when these customers are refused cover by an insurer they are left to continue their search alone without knowledge that insurance is available or where to obtain it.   The signposting/referral system will be of particular help with motor and travel insurance as these are the areas identified where some people have difficulty finding an insurance policy.

BIBA has been calling for greater assistance for customers and is delighted that signposting will become compulsory.   BIBA has an established and successful ‘Find a Broker’ helpline and website that already helps customers to find a specialist insurance broker who can provide suitable insurance.  However, BIBA believes there are many more consumers who are refused cover from comparison sites and direct insurers who are unaware of this helpful service and that an insurance broker can insure them.  

Graeme Trudgill, BIBA Technical and Corporate Affairs Executive, said: “There is a solution through insurance brokers who can cover extremely difficult risks. It really is just a case of knowing where to go. This new requirement for signposting, once introduced, will help customers to find the protection they need, otherwise they run the risk of travelling uninsured, we know of some that have even decided not to go on holiday as they could not find insurance.”

Peter Staddon, BIBA Head of Technical Services, added: “BIBA will continue to work with the Government to ensure the appropriate signposting and referral systems are put in place.”

The BIBA find a broker helpline and website is well established and takes more than 340,000 enquires per year from customers who have been signposted from a range of consumer bodies and BIBA hopes that its service will form part of the formal signposting system as it has already proven to assist customers in finding all types of insurance.

BIBA welcomes any signposting solution and can help support it by way of the local rate Find a broker helpline 0870 950 1790 or website at www.biba.org.uk

CASE STUDY

Mrs Ellis needed to find insurance for her daughter’s car which was in France but would be returning to the UK.  Having trawled the internet and spoken to a number of different insurers for nearly three hours she was becoming increasingly frustrated at her lack of progress.   It was important to Mrs Ellis that everything was done correctly and that the correct insurance was put in place.  Fortunately, it was suggested to Mrs Ellis that she call the BIBA Find a Broker helpline, she did and with the help from a BIBA insurance broker, was guided through the process and found a suitable solution.

-ends-

Notes to editors

1. The Policy Statement from the Government’s Equality Office can be accessed here and the BIBA’s response to the consultation on ending age discrimination in services and public functions can be viewed here

2. For further information please contact:

BIBA press office:
Leighann Burtrand, Communications Manager
020 7397 0223
burtrandl@biba.org.uk

2. About British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes 1700 regulated firms. Insurance brokers and intermediaries distribute nearly two-thirds of all UK general insurance. In 2008, insurance brokers and intermediaries generated £1.5 billion of invisible earnings and they introduce £22 billion of premium income into London’s insurance market each year.

BIBA is the voice of the industry, advising members, the regulators, the Government, consumer bodies and other stakeholders on key insurance issues.  BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards. BIBA works closely with the Chartered Insurance Institute to provide training to those working in the industry and actively participates in helping the industry and its customers deal with some of the major issues of the day.

BIBA members provide professional advice to businesses and consumers, playing a key role in identification, measurement, management, control and transfer of risk.  They negotiate appropriate insurance protection tailored to individual needs and operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.

To find your nearest BIBA broker visit the ‘Find A Broker’ section of the BIBA website, www.biba.org.uk or call BIBA’s consumer helpline on 0870 950 1790

Eric Galbraith’s blog – The inspiration drawer

Tuesday, January 26th, 2010

The inspiration drawer – it was not a piece of furniture I’d come across before, but it had a certain je ne sais quoi made more alluring because BIBA’s 2010 Manifesto was going to take pride of place in it. 

Put simply, it is a drawer in which a recent visitor to our offices – a leading industry figure no less – keeps things that inspire and stimulate him.  The drawer keeps these objects and documents safe allowing their owner to dip in and look at them whenever creativity and motivation is lagging.

The drawer’s creator was in earnest and did not mean the title as a polite euphemism for the bin.  It got me thinking.  The practicalities and legalities aside of keeping large, living things in a small piece of office furniture what would I fill my drawer with?  I did a quick poll of the BIBA office out of interest.  My questioning revealed a mixed bag including a pair of Manolo Blahnick shoes, an Arsenal striker, a piece of Lalique glass, The Onion’s news archive and someone’s father.

I want to add Olympic oarsman Sir Matthew Pinsent’s formula for winning gold to that collective drawer.  Pinsent and his crew used the mantra “Does it make the boat go faster?” to help them very quickly focus on the important things which improved their performance and to discard those things that did not.  It’s something we’ve taken to heart at BIBA.

Out of the boat would go all television advertising campaigns (even those featuring cute, furry mammals) which ignore the importance of getting the right insurance protection with their continual focus on bargain basement prices.  Price comparison sites may have made the boat go faster for the consumer, but they do not always get you where you ought to be. 

And at what cost to the insurance industry? Speed has meant that fewer questions are asked of the customer, little is know about them and their life style.  Much of the business generated through these sites has been found to be poorer quality resulting in more claims and lost profits for insurers. Try to put up rates to compensate and the customer simply moves on to the next low cost provider and the cycle starts all over again.  Sadly, the industry seems content to accept this state of affairs. 

There are signs that insurers are looking to increase their terms, but I would argue there is more that we can be doing besides that to turn things around.  Getting the right data from our customers in order to be able underwrite risk correctly would be a start.  That is what being a broker is all about – asking the right questions, clarifying information when it is unclear and finding the right cover at the right price because they know their customer best.  Such involvement can also filter out bad business helping to reduce insurance fraud which the National Fraud Authority estimates is costing the industry £2bn a year.

This may come as a revelation to some insurers, but hopefully not intermediaries.  Perhaps now is the time for a reminder about the value a broker brings to the equation – that knowing the customer can and does result in higher quality business, improved retention and better service resulting in a faster boat not only for brokers, but for insurers and ultimately the consumer too.  Now there’s inspiration for a TV advertising campaign in the making.

BIBA announces award-winning Keynote speakers for BIBA 2010, Professionalism in a changing world

Tuesday, January 26th, 2010

The Keynote speakers for this year’s BIBA conference have been confirmed as Joe Plumeri, Chairman & CEO of Willis, the BBC’s World Affairs Editor, John Simpson and the much loved actress Joanna Lumley. Recently voted by The Times newspaper as the ‘Briton of the Year 2009’, Joanna Lumley has received praise and respect for her success in defending the interests of the Gurkha soldiers who have fought for Britain.

This year’s conference and exhibition, held over two full days at ExCeL London on May 19 & 20, will feature four keynote sessions for the first time.  Joe Plumeri and John Simpson will speak on Wednesday, and on Thursday morning there will be a top-level debate about the challenges facing the industry in the new decade. Chaired by Jonathan Dimbleby, the panel will comprise Robert Brown, CEO Aon, Peter Cullum, Executive Chairman Towergate Partnership, Phillip Hodson, CEO Oval, Sandy Scott, Director General CII and Richard Ward, CEO Lloyd’s, with Joanna Lumley closing the conference.
BIBA Chief Executive, Eric Galbraith, said: “I am absolutely delighted to be able to announce such an interesting line up of top-level speakers. Despite these difficult economic times, BIBA and its sponsors are continuing to invest in the premier insurance event of the year, showcasing the value general insurance brings to the UK economy.
“The exhibition continues to be fully supported and the conference programme will be first class, offering a wide range of seminar subjects. With free entry for brokers, there’s something for everyone!”
Registration will be open from the middle of February. To book a place log on to www.biba.org.uk and click on the conference icon.
The BIBA conference & exhibition is free to all BIBA members. Other brokers or intermediaries may attend the exhibition for free. Upgrades to a full conference ticket are available.
-ends-

Notes to editors

1. For further information please contact :

BIBA press office:
Leighann Burtrand, Communications Manager
020 7397 0223
burtrandl@biba.org.uk

FSA issue Dear CEO letter on Client Money and Assets

Monday, January 25th, 2010
 
The Financial Services Authority (FSA) has sent a ‘Dear CEO’ letter to firms raising its concerns about the handling of client money and assets.  The Dear CEO letter from Sally Dewar, FSA Managing Director, Risk, has been sent to around 1,000 relationship managed firms. It expresses concern that firms are not always achieving an adequate level of protection for client money and assets.Please click here to read the Dear CEO letter. The Dear CEO refers to the findings from visits to a range of investment firms and insurance brokers during the past nine months and highlights the priority areas where the FSA expects to be focusing its resources and to see improvements in practice in the coming year.  These findings and priority areas are set out in the FSA’s Client Money and Asset report, which accompanies the Dear CEO letter.

Please click here to read the Client Money and Asset report.

Weak areas discovered include: poor management oversight and control; lack of establishment of trust status for segregated accounts; unclear arrangements for the segregation and diversification of client money; and incomplete or inaccurate records, accounts and reconciliations

Poor practice at insurance brokers was found to include: 

  • Unclear allocation of duties by senior management leading to confusion between staff or a lack of accountability.
  • Client money processes had in some cases been delegated too far, leading to a lack of senior level responsibility and accountability.
  • Inconsistencies between Terms or Business Arrangements and client money calculations.
  • Review and sign-off processes surrounding client money calculations and reconciliations were not always evidence.
  • In some firms there was insufficient due diligence to assess client money risks arising from an acquisition.
  • Issues around the segregation of client money.  While the FSA allows non-statutory trust bank accounts to be used to extend credit for funding insurers’ and clients’ normal insurance transactions, client money was found to be used for other purposes too.
  • Unallocated cash and legacy balances were not being reduced promptly enough
  • Firms over-relied on CASS audit reports rather than perform their own assurance checks.

Section three of the report sets out further work that the FSA intends to carry out in relation to CASS.  The regulator will continue to carry out visits to firms during 2010 and has promised regulatory intervention where it finds compliance failings.  It will also produce a report on the findings from these visits in 2010 and a number of consultations in regard to changing provisions within CASS.

The letter requires members to read the report and consider its relevance for their business. Members must also confirm to the FSA that they have properly considered the report and that they are in compliance with its obligations to protect client money and assets.

 

BIBA weekly update

Friday, January 22nd, 2010

 

Dear Member
 
This week’s top issues:
 

  • BIBA’s 2010 Manifesto has been sent to more than 200 political stakeholders
  • A social media campaign has been launched to allow members to communicate on Twitter and Linkedin
  • Responded to the European Commission on  age discrimination in financial services to promote signposting to BIBA members

 BIBA has also:

  • Announced that Brendan McManus, Chief Executive of Willis UK & Ireland and Ken Davidson, Chairman of Crispin Speers & Partners joined its board
  • Attended DVLA continuous insurance enforcement strategy meeting
  • Attended CBI financial services event
  • Issued two regulatory advice notes for members - Information Commissioner’s Office introduces £500,000 penalty for data breaches  and Financial sanctions-related releases w/c 17.01.10
  • Met with Enterprise UK to look at website opportunities for small businesses
  • Attended the BIBA Anglia, East Midlands, Merseyside and West Cheshire annual general meetings
  • Attended an Insurance Age Power Hour on insurance premium tax (IPT) changes
  • Held its GIBC meeting to discuss member issues
  • Met Lloyd’s to discuss its pandemic protocol
  • Discussed wholesale broker compliance issues with FSA

For more information on any of these activities, please call the BIBA member helpline on 0844 77 00 266

Kind regards  

Eric Galbraith
Chief Executive

BIBA’s Twitter account is now live

Thursday, January 21st, 2010

Follow us at www.twitter.com/bibabroker

BIBA board boosted with two new appointments

Tuesday, January 19th, 2010

The British Insurance Brokers’ Association (BIBA) has announced the appointments of Brendan McManus, Chief Executive of Willis UK & Ireland and Ken Davidson, Chairman of Crispin Speers, to its board.

Brendan, who has invaluable experience of broking and the general insurance market, and Ken, Chairman of BIBA’s London Market Regional Committee (LMRC), will join the board at its next meeting on 26 January 2010.

Eric Galbraith, BIBA Chief Executive, said: “I look forward to welcoming Brendan and Ken to the board as I know that they will both bring invaluable understanding and experience of the broker market.”

Brendan commented: “I look forward to getting involved and representing BIBA members on the many challenges that they face during 2010 and beyond.”
Ken added: “It has been very rewarding to chair BIBA’s LMRC and I now look forward to representing the wider issues affecting all BIBA members.“

Brendan joined Willis in 2007 from Royal & SunAlliance (RSA) where he was Managing Director of the broker business, a role he held for three years after working in several different capacities.

Ken is a Past President of the Chartered Insurance Institute, Chairman of Crispin Speers&Partners, Lloyds Brokers and Chairman of several companies in the insurance/financial services industry.

BIBA Weekly Update

Friday, January 15th, 2010

Dear Member
 
This week BIBA has:

  • Launched its 2010 Manifesto outlining its priority lobbying issues for the year ahead – Click here
  • Formally responded to Department for Transport on proposed new regulation for electronic delivery of motor insurance certificates
  • Met with HMRC to discuss changes to IPT
  • Appointed two new members to its London Market Region Committee (LMRC) – Click here
  • Appeared on BBC Radio 4 Money Box to discuss general insurance issues - Click here to listen
  • Issued regulation update to members – BIBA responds to FSA fees and levies paper CP09/26
  • Met with Credit Industry Fraud Avoidance System (CIFAS) to discuss how brokers can help with staff fraud detection
  • Met with the Chairman and Director of BIPAR (the European Federation of Insurance Intermediaries) to discuss review of the Insurance Mediation Directive
  • Met with Head of International Regulatory Affairs at Lloyd’s
  • Met again with HMRC to discuss practical implementation of issues arising out of changes to IPT
  • Attended and presented at Merseyside & West Cheshire AGM
  • Attended Financial Services Practitioner Panel and Smaller Businesses Practitioner Panel trade association briefing

For more information on any of these activities, please call the BIBA member helpline on 0844 77 00 266 

Kind regards

Eric Galbraith