The British Insurance Brokers’ Association (BIBA) has urged the UK Government to overhaul what it describes as an overly complex and burdensome regulatory regime for insurance brokers, warning that the current approach is restricting growth and threatening the future of a key financial services sector.
In a letter to the Chancellor ahead of the annual Mansion House speech, BIBA chief executive Graeme Trudgill (pictured above) called for “world-class regulation” to match the scale and importance of the UK’s insurance market. He said the Financial Conduct Authority’s (FCA) current framework is deterring new entrants and placing increasing strain on smaller firms.
“Access to the right insurance is critical to ensure a well-functioning, growing economy,” Trudgill wrote. “However, it is increasingly hard for individuals and businesses to access the advice and products they need because of the challenges caused by over-burdensome regulation.”
The trade body highlighted a sharp drop in new broker registrations, pointing to FCA figures showing only two new general insurance brokers were authorised in the first quarter of 2025, while several existing firms left the market. “This is the canary in the coal mine for a sector that is a cornerstone of the UK economy,” the letter warned.
BIBA said the insurance broking sector contributes around £100 billion to the UK economy and employs more than 100,000 people. It reiterated its support for regulation that protects consumers and promotes trust in the market, but called for reforms to simplify rules, streamline reporting requirements, and remove unnecessary compliance barriers.
The letter urges the Chancellor to build on the FCA’s recent consultation on simplifying insurance regulation and to ensure the regulator delivers on a mandate issued last year to support economic growth. Trudgill said now is the time to “stop the downward spiral on productivity” and create an environment where firms can grow, innovate, and compete internationally.
He called for a more collaborative regulatory approach, with the FCA working alongside industry and trade bodies to share best practices and track performance against clear growth and competitiveness metrics.
As the Government prepares to outline its Financial Services Growth and Competitiveness Strategy, BIBA said it is positioning the broker sector as both a barometer and a vehicle for the UK’s wider ambitions in financial services.
