Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

Context

BIBA has launched its 2025 Manifesto, titled “Partnering to deliver value”, at an event at the House of Commons attended by the Economic Secretary to the Treasurer (the ‘City Minister’) Emma Reynolds.

Key points to note and next actions

• The Manifesto sets out the importance of collaboration to achieve the Government’s growth mission and to address the challenges faced by insurance brokers and customers.
• Within the Manifesto, BIBA sets out a new six-point plan to achieve a more proportionate regulatory environment, which calls for the removal of unnecessary FCA rules now the Consumer Duty is in place, reform of the product value/fair value assessment requirements, reducing the scope of the Consumer Duty by removing larger commercial clients, streamlining reporting requirements, speeding up authorisations and the need for international comparison metrics for the regulator.
• This was supported by the City Minister, who backed BIBA’s calls for more proportionate regulation, saying that she knows that regulation is an “issue very close to all of your hearts”.
• The Manifesto includes a broad range of issues, calls to action and commitments including some long standing and ongoing issues such as flood, cyber insurance, skills, access to insurance and capacity challenges.  
• There are a number of new campaigning issues identified for the first time this year, including differential pricing, permitted insurance payments under the Leasehold and Freehold Reform Act, participation in the Motor Insurance Taskforce and premium finance.
• There is also new research published from WPI Economics highlighting that if IPT were to increase that not only would households and businesses cut insurance levels, but 40% of businesses state they would have to pass on the cost to customers. The research also called IPT a ‘tax on growth’, as 30% of businesses surveyed said an increase to IPT would decrease business investment.