Brokers are ‘absolutely fundamental’ to risk management innovation - Andrew Griffith

Insurance brokers are “the real lifeblood” of the UK’s economy because they are “absolutely fundamental” in addressing “the most difficult risks that we face going forwards” and supporting risk management innovation, according to Andrew Griffith, economic secretary to the Treasury.

Addressing attendees at trade body Biba’s 2023 manifesto launch event at the Houses of Parliament on 24 January 2023, the Conservative MP showered praise on the broking community, emphasising that broking professionals should “never be ashamed” of their “core purpose in underlying the society that we live in”.

He said: “I want to congratulate you and your industry on all of the value that you deliver. And that’s not the classic value that politicians often talk about – the number of [highly] skilled jobs, the number of apprenticeships, the contribution that you make to the economy through the taxes, prosperity and enterprise.

“I want to, as somebody who I hope understands risk and embraces risk as part of the lifeblood of the enterprising economy that we seek, congratulate you on your absolutely vital role in managing, in pricing and coming up with solutions that help people manage that risk.

“It is through the magic of the insurance industry that we are able to transfer and manage risks and unlock so many of the benefits that advanced economies and advanced societies rely upon and that we will continue to rely upon, so never be ashamed of your core purpose in underlying the society that we live in.”

Griffith added that another reason why brokers are “the real lifeblood of our economy” is because they help “businesses start that would never be able to exist if it wasn’t for your products”.

“It’s something we should never take for granted as we try and strive and create the right regulatory environment in which you can do that valuable work,” he continued.

“We should never take for granted the underlying value of that management of risk function you perform.”

Industry aligned with government

Brokers are also central when it comes to risk management innovation, noted Griffith.

He explained: “As we think about the most difficult risks that we face going forwards, this industry is absolutely fundamental to how we deal with those, how we address those and how you can help us innovate.

“You do have a minister, a government, a chancellor, a prime minister who are wholly aligned with your success and that of your clients and the products that you sell.”

Griffith additionally commended brokers for their work around the Russia-Ukraine war.

He concluded: “I do want to also call out the work that has been done by parts of the industry in helping the sanctions to try and bring pressure to bear on Russia as it has pursued its illegal war in Ukraine.”

Griffith was appointed economic secretary on 27 October 2022. He replaced John Glen, who is now chief secretary to the Treasury after resigning as economic secretary in July 2022.