BIBA responds to “alarming” ICOB proposals

Proposals to change Insurance Conduct of Business (ICOB) rules have attracted criticism from insurance brokers concerned that the reforms could leave them on an unequal footing with direct insurers. In response to the Financial Services Authority’s (FSA) consultation, which closed at the end of September, BIBA said proposals to remove certain disclosure requirements for insurers, which are not covered by the EC Insurance Mediation Directive, while leaving them in place for brokers goes against its belief that consumers should be entitled to the same set of disclosures regardless of how the product is purchased. Eric Galbraith, BIBA’s chief executive, said the association was “very disappointed that the FSA does not agree”.