BIBA appeals to Chancellor on regulatory relief

GlobalData

Mon, Jul 14, 2025, 8:49 AM 2 min read

The British Insurance Brokers’ Association (BIBA) has requested the Chancellor to consider easing the regulatory constraints on insurance brokers.

In a letter, BIBA chief executive Graeme Trudgill stressed the importance of insurance brokers to the UK economy and the challenges posed by current regulatory measures.

BIBA argues that over-regulation is hindering the ability of brokers to serve their clients and is contributing to a decline in the sector, as evidenced by the low number of new broker authorisations compared to the number of firms exiting the market in the first quarter of 2025.

The association is seeking a revision of the Financial Conduct Authority's (FCA) regulatory framework, suggesting that a more “balanced” and “reasonable” approach to regulation is necessary to support the government's growth agenda and to maintain the UK's position in the global market.

“Now is the time to stop the downward spiral on productivity, to encourage new firms to start up, and to persuade the smaller businesses that serve the local communities to stay in the sector”, the letter read.

Trudgill's letter calls for a regulatory environment that reduces complexity, encourages innovation, and supports the establishment and scaling of new firms.

BIBA believes that the FCA's mandate to regulate for growth should translate into tangible changes, including a more “reasonable reporting requirements” rather than ‘simplifying insurance rules’ in a recent step by FCA.

“Now is the time, Chancellor, for bold action – not just cutting red tape, but resetting regulation”, Trudgill said in the letter.

The letter concluded with a call for the Chancellor to use the upcoming presentation of the Financial Services Growth and Competitiveness Strategy to initiate a shift towards regulation that better balances consumer protection with the need for economic growth and “competitiveness” in the insurance broking sector.

In May 2025, the FCA announced plans to update its insurance regulations by eliminating "outdated or redundant requirements" from its rulebook.

"BIBA appeals to Chancellor on regulatory relief " was originally created and published by Life Insurance International, a GlobalData owned brand.

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