Barry's Blog: A long time banging the drum

I’ve been banging my personal drum for a few months now through these columns, so I think it’s time to put on one of my particular hats and bang a particular drum.

I am a staunch believer in ‘credit where credit’s due’ as a good ethos in personal as well as business life. One such example very close to my heart is that of the IIB. As a long-time IIB director I’ve seen, first hand, the inordinate effort that has gone into lobbying on members’ behalf – indeed, of brokers generally that have benefited. Yet rarely, unfairly so in my opinion, is the IIB given the recognition for its efforts.

It started some years ago when the late Andrew Paddick, as director-general of the IIB, mooted that the much-vaunted Financial Services Compensation Scheme (FSCS) would end up with insurance brokers footing the bill for the misdemeanours of other insurance providers – banks, building societies, mortgage lenders and so on. How right he was! But no one at the time was listening; no one was offering support. It was one of many lone crusades that today has such a high profile.

The IIB has been the instigator of lobbying on many issues (and there are plenty of examples to draw on) and it has had some successes too. After the levy letter (or demand would be a better word), the IIB received many calls from aggrieved brokers. This despite its previous e-bulletins, website messages and so on, communicating the level and unfairness of the levies - all explaining and distilling copious pages of regulator-speak, warning of the issues and seeking feedback. It seems that, now the levy invoices have been received, everyone has woken up.

I suppose, from the IIB’s standpoint, the old adage in reference to selling techniques is the most appropriate: ‘Tell ‘em, tell ‘em and tell ‘em again’ is the only way to galvanise some action. Frustrating though!

I am not encouraging mutiny – we, as brokers, will have to pay the levies raised – but, sure as eggs is eggs, if we do nothing there’ll be another bill on our doormats in a few months. Now, no amount of lobbying guarantees success, but the noise the IIB (and, credit where credit’s due, Biba too) made regarding the insurance premium tax farce did reap rewards. The anti-FSCS lobbying is showing signs of reaching the ‘right’ ears (new, more receptive ears in those corridors of power). Doing nothing, as I’ve said before, is not (or shouldn’t be) an option. All insurance brokers must make their presence felt if we are to persuade, cajole and reason with those that make decisions that seem so irrational.

Yes, it all comes down to the payment protection insurance (PPI) issue again. How many times do we hear that only a few brokers sold PPI? But how many is that? If the facts were presented, rather than hearsay (that, say, only 1% or 5% or whatever sold the blessed product), we would be in a stronger position for negotiation.

A good few months ago, the IIB openly asked (and not for the first time) the insurance media to lend their weight to the efforts of the trade associations in lobbying for a fair deal (‘treating brokers fairly’ was one of the expressions used). I was very pleased to see that Insurance Times is to use its might to address the unfair system of fees and levies, and already they have had many, many insurance brokers respond. We all know and see, regularly, the power of the press and the IIB has offered its assistance in supporting their endeavours.

Incidentally, the good thing about ’bandwagons’ is that it is the collective noise on the same subject that creates the desired impact.

Barry Fehler is a director of the IIB, chairman of Broker Direct and deputy chairman of South Essex Insurance Brokers.