What's Happening?
A recent review of the insurance brokers' Code has raised concerns about the sustainability of self-regulation within the industry. The report highlights the need for the sector, led by the National Insurance
Brokers Association (NIBA), to address stakeholder concerns by updating and rewriting the existing Code. The profession, which relies heavily on specialized knowledge and trusted relationships, is under pressure to adapt to a more skeptical and demanding environment. This adaptation requires increased transparency and demonstrable trustworthiness to maintain its credibility and effectiveness.
Why It's Important?
The potential loss of self-regulation for insurance brokers could have significant implications for the industry. Self-regulation allows for more tailored and flexible governance, which can be more responsive to the unique needs of the sector. Losing this could lead to increased external regulation, potentially resulting in more rigid and less industry-specific rules. This shift could impact the operational efficiency of brokers and their ability to innovate. Furthermore, it could affect consumer trust and the overall perception of the industry, as external regulation might be seen as a response to a failure in self-governance.
