The British Insurance Brokers’ Association (BIBA) is a professional organisation in the United Kingdom representing insurance brokers, insurance intermediaries and their customers in the area of general insurance. Its function is to advise members, insurance regulators, government, consumer organisations and shareholders on insurance issues.^[1]

Members are investment brokers who are registered under the Financial Services Act of 1986.^[2] There are over 2000 members.^[1]

The organisation was founded in 1977 in order to provide representation for independent insurance brokers. In 1988, after the Financial Services Act was introduced, membership was extended to independent financial advisers, and the organisation became the British Insurance and Investment Brokers’ Association – BIIBA. In 1994, independent financial advisers were coming under pressure for stricter regulation, which resulted in a proposal for the creation of an association to represent their interests. BIIBA was instrumental in the establishment of its sister organisation, the IFA Association. In 1999, the organisation reverted to its original name.^[1]

Contents 1 Activities and public announcements 2 Controversy 3 References 4 External links

[edit] Activities and public announcements

• In 2004, Biba ran a number of workshops for members in anticipation of new regulations by the Financial Services Authority (FSA). Eric Galbraith, ceo of Biba, said, "Biba will be looking very closely at the insurance mediation directive and will be seeking to challenge the FSA's position over the coming months with a view to making the transitional arrangements permanent. I hope common sense will prevail as the alternative will impose costs on the industry disproportionate to any benefits in terms of consumer protection." (Jan 29, 2004 ^[3])

• In June 2005, the organisation urged members to offer travel insurance which covered acts of terrorism after most companies introduced an exclusion policy on such events following the attack on the World Trade Center.^[4]

• In October 2005 they advised consumers not to buy mobile phone insurance but to add it to their home insurance policies.^[5]

• In 2007, a report was commissioned by BIBA which questioned 250 directors of businesses in the UK about their plans in the event of a disruption to their operations as a result of terrorism, flooding, fire, etc. About half were found to have no plans at all.^[6]

• In 2008, BIBA appealed to the FSA for tighter regulation of price-comparison websites following a study finding that consumers found the websites confusing and the information they provided inadequate. (January 27, 2008 ^[7])

[edit] Controversy

• In an insurance dispute in which an insurer denied part of a claim to a surviving spouse in a motorcycle accident in which a man was killed, on the grounds that the marriage was unstable, Jennifer Weller, head of communications, said, "We think it's remiss that the insurance company didn't just pay up. After all, the couple were still married. It casts the whole insurance industry in a bad light." (Mar 14, 2001) ^[8]

• In 2003, The Sunday Telegraph suggested that buying insurance directly from an insurer was cheaper than buying from a broker due to the commissions earned by brokers. BIBA spokesman Jennifer Weller replied in a letter to the editor that direct insurers were, "not at all necessarily cheaper and the millions of pounds they spend on brand awareness (see all those television advertisements) often exceed any commission paid to intermediaries." She added, "Brokers give independent advice on insurance, and yes, they are paid by commission, but are completely transparent about this to the client." (Feb 15, 2003) ^[8]

To this W A Collins, Managing director of the BPX Group of Companies, Leicester, replied, "She omits to mention that for long-term policies, life insurance, pensions, bonds, and estate protection, in addition to the initial 5 per cent, a further 1 per cent is paid to the broker every year for the life of the plan (which can be for 20 or 30 years), all out of the policyholder's pocket." (Feb 22, 2003) ^[8]

[edit] References

1. ^ ^{a b c} British Insurance Brokers’ Association
2. ^ A Dictionary of Finance and Banking (1997) Oxford University Press.
3. ^ Financial Adviser, London, UK (Gale)
4. ^ The Mirror, (2005) London, UK
5. ^ The People (2005) London, UK
6. ^ Continuity Central
7. ^ The Independent
8. ^ ^{a b c} The Sunday Telegraph London, UK

[edit] External links

• The British Insurance Brokers' Association

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