New EU rules looming – and many UK brokers aren’t ready

Survey results show that we may be woefully unprepared for Brussels’ next big regulatory roll-out

New EU rules looming – and many UK brokers aren’t ready

Insurance News

By Terry Gangcuangco

They say what you don’t know won’t hurt you – not in the world of compliance though, where every little thing you don’t know will come back and bite you.

With the European Union’s General Data Protection Regulation (GDPR) coming into effect in the second quarter of next year, are insurance brokers in the UK ready? Survey says ‘not really’.

Here’s what DAS UK Group’s Market Barometer found:
  • 39% of 250 insurance brokers in the UK are not aware of GDPR.
  • Of those brokers that are aware, only 57% believe they will be compliant by May 2018.
  • Brokers from larger national companies were more knowledgeable of the new regulation, with 72% being aware; 62%, smaller provincials; 42%, super-regional firms.

“It’s concerning to note the apparent unpreparedness of brokers given the deadline is less than eight months away,” commented DAS UK Group’s managing director of insurance for UK and Ireland James Henderson. “With potential fines of €20 million or 4% of global annual turnover – depending on which is bigger – awareness should be far higher.”

Henderson added: “It is vital that UK brokers have a stronger grip on the new regulations as the implications will have a major impact on their businesses.”

The legal expenses insurer has also revealed that, despite Britain’s imminent departure from the EU, a majority of brokers in the UK are still bullish on the London market. A good 80% expect London to retain its place among global insurance hubs.

GDPR, which provides stringent rules regarding the use and handling of customer data, will take effect on May 25, 2018.

Related stories:
Brexit won’t excuse the industry from GDPR compliance
Get ready: GDPR a “starting point”

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