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It looks like wholesale brokers in the London insurance market need not worry too much, as “manageable” was how a trade group has described the effect of the now in-force Insurance Distribution Directive (IDD).
While London & International Insurance Brokers’ Association (LIIBA) chief executive Christopher Croft (pictured) recognised that new regulation “always adds to the burden firms face,” he in effect offered an assurance that wholesale brokers won’t be impacted as heavily.
“It’s fair to say that the IDD is focused primarily on retail brokers and the personal lines market,” noted Croft. “Because large risks, as defined by the directive, are exempted from the most onerous requirements such as those affecting the information customers should be sent, the majority of business conducted in the London insurance market will fall partly outside its scope.
“LIIBA lobbied hard to ensure that the complexity and highly commercial nature of London’s business was recognised in this way.”
He added that the association’s role has been to raise awareness of the requirements, educating its members on the necessary steps as “even establishing for certain that you don’t need to change processes is a sizeable exercise in itself.”
