Biba in 2008 and beyond

Well, it’s the start of a new year.

It’s a time for resolutions, throwing out the old and ushering in the new. Our business plans are in place and optimism should be high.

The European Commission and, closer to home, the UK’s government have their own agendas in trying to create an environment where the individual is both socially included and financially capable. Changing demographics and economics mean we must all take more responsibility for our own future as the government will not be able to afford to in the future.

Looking ahead, I see a London market that must ensure that it maintains its pre-eminent position in the global financial services industry, particularly following the adverse publicity from the effects of Northern Rock.

The banking sector will need to sort itself out before an acceptable resolution to the issue of Financial Services Compensation Scheme cross subsidy can be finalised (not that I am in favour of any cross subsidy).

The capital markets will also look to play a more direct and challenging role in insurance and our industry needs to ensure that it remains competitive and innovative in order to meet that test.

The EU’s activities on gender, age, competition, the IMD and a variety of other issues will continue to influence and add cost to the distribution and purchase of general insurance products. We as an industry need to challenge any measures which bring additional cost and very little benefit to the consumer.

The FSA too needs to focus not on better regulation or light touch regulation but the right regulation for each part of our financial services industry.

Principles based regulation must reduce the cost of regulation and promote professionalism from within our sector. The Retail Distribution Review in the life and pension sector still has a long way to run. It is vital that advice is the defining position for both the life and pensions as well as for the general insurance sector, however.

Government aside, the natural world will be the insurance industry’s most constant and greatest challenge. Natural disasters could have a substantial impact on both future cost and coverage. It will be essential for all of us to have a greater understanding and involvement with tackling climate change.

In all of this, having a unified voice as a distribution channel will be ever more essential and Biba will continue to vigorously defend, promote and support the broker and intermediary sectors throughout the coming year and beyond. So that all said, let’s make 2008 a great year.