The British Insurance Brokers’ Association (BIBA) has released its 2018 Manifesto, Engaging, which calls for improved access to insurance solutions in an effort to narrow the region’s protection gap (disparity between economic and insured losses post-event).
The protection gap is viewed as one of the insurance and reinsurance industry’s biggest challenges and opportunities, and while the gap is more pronounced in emerging parts of the world, more mature and advanced markets, as seen in the UK and the U.S., also suffer from a lack of available, affordable, and effective insurance protection.
BIBA explains that high on its agenda is improving access to insurance protection for the almost 16 million people who don’t have home insurance protection, and the organisation is calling for “wider signposting to suitable insurance brokers to help narrow the insurance gap.”
The reality is that many of the almost 16 million people who live in rented or occupied accommodation in Britain that don’t have insurance cover, may have little or no savings, which supports the need for access to insurance protection for possessions in case of a fire, flood or theft.
BIBA explains that many would then have to “turn to using credit or do without and could suffer stress and other hardships in the aftermath of a loss.”
“BIBA is part of the Financial Inclusion Commission Reference Group and supports the Commission’s call to address the coverage gap for those who should have cover but don’t and to bridge the access gap for those who want cover but can’t easily obtain it,” states the Manifesto.
Guy Opperman MP, Parliamentary Under Secretary of State for Pensions and Financial Inclusion, said; “Insurance brokers can play an important role in providing help and support for those who sometimes have difficulties in accessing insurance. BIBA plays an important role in this work and assisting those in need to support financial inclusion.”
Graeme Trudgill, BIBA’s Executive Director, said; “BIBA already has a successful established model for helping consumers and businesses access suitable insurance cover thought our Find-A-Broker service which doubled the number of annual enquires in 2017 to 551,300. We believe the FCA and other stakeholders can do more to broaden signposting, particularly people with medical conditions, to appropriate insurance brokers to help them access insurance.”
As well as boosting home insurance penetration across the region, the Manifesto also notes a commitment from BIBA to help raise awareness of the terrorism insurance gap, and to help the market develop effective solutions, which includes broadening the scope of Pool Re to include non-damage business interruption protection.
As well as narrowing the coverage gap, BIBA’s 2018 Manifesto explores numerous other aims, and was launched in the Houses of Parliament to an audience of Ministers, MPs, Lords, senior Government officials, insurance professionals and media, by the Rt. Hon, Nicky Morgan, MP, Chair of the Treasury Committee on January 22nd, 2018.
