LIIBA launches 'Brokers Matter' initiative for 2025

Study to measure wholesale broking's global value

LIIBA launches 'Brokers Matter' initiative for 2025

Insurance News

By Kenneth Araullo

The London & International Insurance Brokers’ Association (LIIBA) has outlined its 2025 agenda, placing a significant focus on a new initiative to measure the economic contribution of London’s wholesale brokers to the global economy.

Informally referred to as “Brokers Matter”, the project involves commissioning research to quantify the financial impact of wholesale broking on global GDP. Discussions around the scope and methodology of the research are currently in their early stages.

Christopher Croft (pictured above), CEO of LIIBA, stated that wholesale broking plays a critical role in facilitating global wealth creation by providing risk mitigation solutions beyond domestic markets.

“In 2025, we will commission work to put numbers on this global game. The ability to demonstrate the contribution that wholesale broking makes to global GDP should have the same impact on discussions with international governments and regulators that, 10 years ago, ‘London Matters’ did,” Croft said.

LIIBA believes the research could help address misconceptions, noting that some regulators view wholesale broking as an unnecessary surcharge on insurance placements.

Modernisation and Lloyd’s relationships

The agenda reiterates LIIBA’s commitment to Blueprint Two, Lloyd’s programme aimed at modernising its technology infrastructure. While acknowledging the slow progress, LIIBA stressed that delivering on the initiative in 2025 is critical.

LIIBA also plans to examine Lloyd’s relationship with the broking community. The agenda highlights ongoing friction caused by elements of market infrastructure, which can hinder trading relationships.

To address these issues, LIIBA will partner with Lloyd’s on a survey of its members to provide “objective, productive views” on the Corporation’s operations and identify ways to strengthen collaboration.

The agenda raises concerns over the European Union’s increasing regulatory focus on multi-national placements – insurance products designed to cover risks across multiple countries. LIIBA warns that elements of the EU’s Retail Investment Strategy could limit corporate clients’ access to the global insurance capacity necessary for their operations.

LIIBA plans to work with the European broking body BIPAR and Lloyd’s Europe to monitor regulatory developments.

Looking ahead to 2025

Croft emphasised the importance of building global recognition of the value insurance intermediation provides.

“2025 must be the year in which we bring governments and regulators around the world to fully appreciate the value that insurance intermediation delivers to the global economy,” he said. “For too long, these bodies have viewed the work of our membership with suspicion. We need to address this now.”

LIIBA aims to ensure brokers can operate without unnecessary regulatory impediments, particularly in a global environment increasingly affected by protectionism and populism.

Croft highlighted the development of LIIBA’s relationship with the UK Government and noted improved collaboration with the Financial Conduct Authority (FCA).

As LIIBA looks to 2025, the association aims to strengthen its advocacy for brokers while addressing key challenges in the evolving global insurance landscape.

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