Biba blog: Change is good, isn't it?

The other day I had occasion to discuss some issues affecting our members and insurers in relation to acquiring new business – a major element of all budgets and business plans. These discussions prompted me to reflect upon how the broking firm I joined in 1966 dealt with new business.

It was not a universally accepted process but we could not accept any new business unless it was introduced by an existing client. In effect, new business had to be on an existing client’s recommendation and even then there was also an agreement about not responding to a potential new client if they were already provided for by a member of the Corporation of Insurance Brokers.

Certainly an unheard of arrangement in today’s environment, that might now be regarded as anti-competitive, but one that at least meant there were procedures in place to get to know your client and a respect for the process of seeking new business.

Unfortunately economic pressures, changes in technology and business ethics seem to have resulted in what I can only describe as unprofessional antics now. It is interesting, therefore, to see increasing reference being made to professionalism, what with the Aldermanbury Declaration, Chartered Status and Biba’s own work on friction issues within our sector.

These initiatives acknowledge a real need to adopt a more professional approach, something my discussions on current practices around new business acquisition definitely highlighted.

The FSA already has principles requiring all firms to “conduct business with integrity”, with “due skill, care and diligence” and to “observe proper standards of market conduct”. The new Financial Conduct Authority will be bringing a greater focus to conduct supervision and will expect firms at board and senior management level to be much more in tune with the way the firm conducts itself when dealing with customers.

Let us not forget, however, that this respect, consideration and honesty should also apply in our dealings with each other – an area often overlooked.

I don’t want, or expect to go back to the 1960s but I do hope we can embrace the current trend towards an environment fogreater professionalism in the 21st century.

Pressures on budgets will always be with us, albeit to different degrees, because of economic, social and technological changes but it does not mean abandoning ethics, professionalism and overall standards in pursuit of business as and when we deal with each other.

Eric Galbraith is chief executive of Biba