Biba 2024: Trudgill highlights ‘significant concern’ over protection gap

Biba chief executive Graeme Trudgill has said the insurance sector can close the protection gap through industry collaboration and innovation.

During his keynote speech, the top boss said that there was ”significant concern” over the gap, with ”only a small portion of the economic risk” faced by individuals and businesses being insured.

Trudgill made the comments after figures from Aviva showed that three in four insurance brokers were worried that some of their clients may be underinsured.

The insurer’s Broker Barometer, which was published on 18 April 2024, revealed that underinsurance was second on a list of market challenges brokers were concerned about, only behind insurer service.

Trudgill said that brokers were doing an “important job, ensuring they are there with both financial and practical support, to help clients through their most challenging times”.

However, he felt that there was ”much work for us to do to better protect our clients” and that working together, as well as being innovative, was central to this.

”There is a significant concern over the protection gap that people and businesses are facing,” Trudgill said.

“The gap is the fact that only a small portion of the economic risk faced by individuals and businesses is insured. And insurance capacity is increasingly hard to come by, as you all know.

“Nothing moves without insurance. Planes don’t fly, homes don’t get built, we couldn’t hold this conference.

“So, it is vital we close this protection gap. So my call to our industry is to innovate, to cover new risks, not to exclude them.

”There is still much work for us to do to better protect our clients. But that will only be done if we work together.

“Working together is at the core of why I believe this industry is special. You will do it throughout this week.”

Manifesto

Trudgill also made reference to the Biba Manifesto, saying that the ”growth part is something we all want to see”.

Entitled Managing risk for growth and economic security, the manifesto sets out its agenda items and action points for the year ahead and, this year, has focused on highlighting the value that insurance brokers bring to the UK economy.

It was launched at a reception in the Houses of Parliament and was attended by ministers, members of Parliament and senior government officials, alongside various insurance professionals and the media. 

Among those to attend was Bim Afolami, economic secretary to the Treasury and MP for Hitchin and Harpenden.

“Our manifesto theme for 2024 is Managing risk for growth and economic security,” Trudgill said.

”That growth part is something we all want to see, including the insurance minister Bim Afolami, and here he is launching our manifesto in the Houses of Parliament in January.”