The underlying theme of the British Insurance Brokers’ Association 2025 Manifesto is one likely to resonate with brokers across the length and breadth of the UK – ‘Partnering to deliver value’.
During the Manifesto’s formal launch in the Houses of Parliament yesterday, BIBA CEO Graeme Trudgill, and chair Jonathan Evans, each emphasised the importance of collaboration to achieve the government’s growth mission and address the challenges faced by insurance brokers and customers.
It was a message hammered home by Emma Reynolds MP who recently took up the mantle of Economic Secretary to the Treasury. Addressing an audience that served as an effective sample of the insurance ecosystem, among them brokers, insurers and regulators, she emphasised that the success of the UK financial services industry is “absolutely vital” to the wider success of the country – and the government’s vision and mission of driving economic growth.
Highlighting some of the major talking points from the Manifesto – which revealed that the general insurance broking sector boasts £23 billion in revenue and employs some 126,000 people across the UK – Reynolds noted that the UK is a world leader when it comes to insurance broking. “The London insurance market is larger than the Bermuda, Singapore and Switzerland markets combined,” she said. “And I think we need to shout more about that.”
Touching on the theme of the Manifesto, Reynolds said that she looks forward to working in partnership with BIBA, insurance brokers and the wider financial services industry in her new role. Brokers have a vital role to play in helping to drive economic growth, she said, and in finding the cover to provide the financial resilience that businesses, large, small and medium-sized need to take risks and grow.
“The chancellor has put the financial services sector, including insurance, at the heart of this government's agenda,” she said. “It is one of our priority sectors for our new industrial strategy. In the Chancellor's first Mansion House speech, she announced a wide-ranging package of reforms to support the sector, and promote growth and competitiveness. This included a new financial services growth and competitiveness strategy… We want to design this strategy in partnership with you.”
Reynolds noted that the Mansion House speech also focused on regulation – a major talking point of BIBA’s 2025 Manifesto and a topic close to the heart of all insurance brokers. “It’s important to have strong and effective regulation,” she said, “but it must be proportionate, and it must not hinder the growth and competitiveness of individual firms and the sector as a whole.
“The financial regulators now have a secondary objective to promote growth and competitiveness, something that there was cross party agreement on during the passage of the rather large FMSA bill… And the Chancellor has built on this by sending new growth focus remit letters to the financial services regulators.”
The government has also continued its work to deliver regulatory reforms that help enhance the competitiveness of the insurance sector, she said. This includes finalising reforms to Solvency II, and these reforms have already freed up billions for both general and life insurance firms, and should allow insurance firms to operate more efficiently, better serving customers.
Touching on the future of the insurance sector, Reynolds highlighted the importance of embracing innovation. “We know that innovation is vital to maintaining the UK's global competitiveness. We've seen the enormous impact that financial technology has had in financial services, particularly here in the UK, where we've been leading that charge, allowing more accurate and informed decisions and enhancing consumer experiences.”
London is a world leader in insurtech, she said, with 280 insurtech firms anchored in the UK, which is the highest number per capita among all major world economies. “With five unicorns in London alone and an estimated sector value of over $20 billion, the UK insurtech market is helping to revolutionise insurance, both in terms of underwriting, broking and broader customer experiences.”
Looking at some of the major risks – both emerging and established – Reynolds spotlighted the government’s intention to help support the insurance sector with the tools required to build the capacity to deal with these risks. With a consultation launched on the potential for a new UK approach to captive insurance companies, and the consideration of further changes to the UK’s insurance linked securities (ILS) regime, there’s a lot of areas for evolution and growth.
On the subject of financial inclusion, she highlighted the critical importance of consumers having access to the financial products that they require. “I do not believe that this is incompatible with our growth mission,” she said. “Indeed, growth can and should be done in a way that promotes inclusivity. The insurance sector has a critical role in providing services that support people's financial resilience.
“Businesses, but also families and individuals rely on the sector to protect them from unexpected and unforeseen events and the financial difficulty that often follows from that. We recently launched our Financial Inclusion Committee as part of the wider work we are doing to address financial inclusion issues and deliver on the promise for inclusive growth.”
Reynolds said the government will be engaging with a broad range of organisations to understand some of the existing challenges in insurance markets, and consider what initiatives government, regulators and the industry can take to promote financial inclusion. “We also recognise that consumers have faced higher insurance costs in a range of markets in recent years, with motor insurance remaining a concern for many.”
In summation, Reynolds reiterated her belief that the UK's broking sector will continue to thrive and create new opportunities for businesses and individuals across the country. “This government will continue to partner with you to unlock this potential and ensure that everyone can reap the rewards of our world leading financial services sector.”
