Insurance brokers confirm merger talks

Posted 10/05/2011

Two of the UK’s largest insurance broker association may need legal assistance to finalise commercial contracts for a proposed merger.

The British Insurance Brokers’ Association (BIBA) confirmed that is in talks with the Institute of Insurance Brokers (IIB), with a view to completing the deal by the end of this year.

Chief executive of BIBA Eric Galbraith said that in the current regulatory environment, it makes sense to have one organisation that speaks with the voice of the industry.

“One association would add strength to our lobbying campaigns on the big issues affecting brokers,” he stated at the opening address of the group’s 2011 conference in Manchester.

This was a view echoed by his counterpart at the IIB Barbara Bradshaw, who said there are major challenges ahead for firms in this sector and the “time is right” for the bodies to undergo a merger.

Last month, BIBA warned that the regulatory issues and commercial laws imposed by the Financial Services Authority in the insurance industry are the biggest burden the sector faces.