"Reducing the scope of the Consumer Duty is one of our most important Manifesto aims and we’re delighted that the FCA has consulted on it."
- Graeme Trudgill, CEO of BIBA
In response to the Financial Conduct Authority’s (FCA) discussion paper DP24/1 which sought industry feedback on its regulation of commercial and bespoke insurance business, the British Insurance Brokers’ Association (BIBA) has called for larger commercial customers to be removed from the scope of the Consumer Duty.
BIBA believes this approach will help reduce the regulatory burden on insurance brokers, many of whom are experienced buyers of insurance with some potentially having a professional risk manager. The industry body has said these increased levels of knowledge ensure customers are less vulnerable to harm.
In its response, BIBA outlined members’ agreement that there’s a need to review the definition of a ‘retail customer’. Members also raised how current requirements to undertake product value assessments for commercial clients are onerous.
“Reducing the scope of the Consumer Duty is one of our most important Manifesto aims and we’re delighted that the FCA has consulted on it. This is an opportunity to achieve change and help improve the burden of regulation on members,” said Graeme Trudgill, CEO of BIBA.
“We’re in a position where we think option three would be most beneficial, ensuring that the protection is in place for those who need it,” he concluded.
