IIB responds to Treasury consultation paper

The Institute of Insurance Broker's (IIB's) chief executive Barbara Bradshaw has responded to HM Treasury's consultation paper, entitled 'A new approach to financial regulation.'

Bradshaw said: "Does the regulator see insurance brokers as a soft touch or is it just a lack of understanding of the role of the insurance broker which has led to the current heavy-handed and expensive regime?

"The cost of regulation is out of all proportion to a broker’s bottom line income. For example on £5m gross income, this year’s regulatory fee would be in the region of £46,000, a hugely disproportionate amount, before taking into account the general expense of running the business, let alone compliance. Hardly surprising that smaller firms are struggling and sadly some are disappearing.

"And the PPI issue continues to raise its ugly head fuelled, no doubt, by the current spate of opportunist advertisements - further penalising ordinary retail insurance brokers. Taking the analogy of product recall on cars, the financial responsibility lies with the motor manufacturer not the vehicle retailer. Now there’s a thought!"