The British Insurance Brokers' Association (BIBA) is pushing for a major overhaul of regulatory rules, calling for simplification, proportionality and clarity. Jill Hambley (pictured), managing director at UKGI Group says the proposals ring true to the industry's day-to-day struggles.
Framed around the theme of "economic resilience”, BIBA’s 2026 Manifesto, released last month, outlines a 10-point roadmap aimed at strengthening the broker sector’s ability to support clients and the wider economy. For Hambley, the regulatory reform elements are particularly urgent and reflective of what firms are experiencing now.
“BIBA are really close to the challenges in the intermediary space,” she said. “They’ve just done the 'Around the Regions' with Lisa Sturley, so they’ve had lots of dialogue with brokers. What we see at UKGI is very much aligned with what they’re hearing.”
Reflecting on the manifesto's broader intent, she said, “We fully support what BIBA is trying to do here and are pleased they are driving the conversation on how the volume of regulation is affecting brokers right now.”
Among BIBA’s most pointed critiques is that the current regulatory framework has become overly complex. Hambley identifies two key culprits: the Insurance Conduct of Business Sourcebook (ICOBS) and the Product Governance (PROD) rules.
"The way these rules have been applied to commercial customers is a real issue," she said. “Commercial business has essentially been pulled into a framework originally designed for consumers.”
That layering effect, she argues, is counterproductive. "If you were to start from scratch, you wouldn’t write those rulebooks the way they’re written now."
BIBA has echoed this concern in its call for a new Financial Services Bill in 2026 to simplify the FCA rulebook and reduce regulatory duplication.
Although designed to ensure fair outcomes for customers, the Consumer Duty and its precursors continue to challenge brokers. Hambley pointed to the cumulative burden from regulations like the General Insurance Pricing Practices (GIPP) and the ongoing confusion around fair value assessments.
“There is still huge confusion about the rules,” she said. “Insurers often apply a platinum-plated approach when collecting data from intermediaries – data they already hold. That creates unnecessary workload across hundreds of insurer relationships."
She warned that the market has yet to find equilibrium between good customer outcomes and operational sustainability. “I’m a bit worried about whether we will ever truly get to that point.”
On reporting and data requests, BIBA has urged regulators to adopt a more proportionate approach. For Hambley, the first step would be to reassess the entire structure of current requirements.
“Do we really need data in the volume they’re collecting? Why not have a single annual report aligned with a firm’s accounting period, with two or three months to submit it?” she said.
A risk-based approach, she suggested, could be reserved for firms near their capital resource threshold. “But for the vast majority, it’s just too much.”
Her suggestions track closely with BIBA’s manifesto demand for simplified, consolidated reporting processes – a move designed to ease pressure on smaller firms.
Smaller intermediaries are particularly vulnerable to unclear regulation, Hambley noted. “Outcomes-based regulation doesn’t work for them because they don’t have the resources or the confidence to interpret it.”
She called for the return of high-quality guides like the Client Money and Financial Crime handbooks. “If they could produce something of that quality for small firms, it would make a real difference in terms of the cost of compliance.”
BIBA, for its part, has committed to developing additional practical resources for members in 2026, including updated guidance on Consumer Duty and a fair value assessment template.
While broadly supportive of BIBA’s agenda, Hambley said she wished more emphasis had been placed on diversity and inclusion.
“I’ve been in this industry practically my whole working life, and I couldn’t honestly say it is 100% better now than it was 35 years ago,” she said. She urged more concrete action on speak-up culture and gender inclusion.
“I really wish we could go a bit further on speak-up culture in particular. I know it is difficult, and it takes a lot of confidence and bravery, but we still see too many things going on day to day, particularly in the way that women are sidelined in financial services.”
As for whether BIBA’s proposed reforms will bring practical relief for brokers, Hambley remains cautious.
“It is way too early to tell,” she said. “There is this constant backwards and forwards between the FCA and the Treasury. It takes too long. You just think, ‘Come on, people – get in a room together and sort it out.’”
Despite her reservations, she praised BIBA’s commitment to tackling the right issues. “You can’t blame them for trying.”
And while regulatory relief may take time, Hambley acknowledged the importance of the broader broker-focused initiatives outlined in the 2026 manifesto – from training to improved market access tools. “At least the conversation is happening,” she said.
