Are general insurance brokers continuing to pay a disproportionate price for the failings of other areas of the financial services industry? Is it right to use blanket financial penalties to protect the consumer, where this may stifle the ability of the broker to get the best price (or indeed any cover at all!) from an unrated, but potentially sound, insurer?
The case continues to be made by the trade body, BIBA, for general insurance broking to be treated separately particularly with regards to the FSCS compensation pot. Watch this space!
In essence the trade body will lobby for general insurance brokers to have their own contribution pot. It appears though that Biba faces an uphill task to get its way.