Broker trade body calls for a period of regulatory stability as “burdensome and costly regulatory regimes” takes toll on the sector.
Speaking at the British Insurance Brokers’ Association conference in Manchester, CEO Steve White called on the Financial Conduct Authority to focus on proportionate supervision and bring an end to a period of marked regulatory change.
“We contend that our productivity is significantly affected by one of the most burdensome and costly regulatory regimes on the planet,” White said.
“We are calling for a period of stability in the rate of regulatory change, with a pause on the continual influx of new FCA requirements and a focus on proportionate supervision for our low risk sector.”
White highlighted the extent of the work that the FCA imposed on insurance brokers since April 2013 and slammed the watchdog for implementing a regime that hinders evolution and innovation.
He said: “120 papers in 5 years – that equates to one every fortnight and none heavier than the 1240 pages of the FCA second consultation paper on the Senior Managers & Certification regime.
“70% of Biba member firms have fewer than 10 staff and for them especially, 1240 pages is just too much.”
White stressed how fast the insurance sector is developing and challenged the industry to look for ways to stay ahead, to evolve systems and processes and to thrive.
The CEO’s comments follow the launch of a cross-industry working group on innovation.
The working group has a remit to promote greater awareness of insurtech development trends, opportunities and issues and identify the areas that would benefit most from innovation and tech-led change as well as issues that actually inhibit innovation.
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