BIBA Looking To Introduce Tougher Code Of Conduct

Following the reasonable success of a new code of conduct introduced by the Association of British Insurers (ABI) concerning personal injury compensation claims following road traffic accidents, the British Insurance Brokers’ Association (BIBA) has signalled that it is looking to introduce a similar code. BIBA executive director Graeme Trudgill has said that he wants something put in place within the first six months, but that the wording would have to be completely different to that of the BIA code because of the different services that the two groups offer.

The British Insurance Brokers’ Association is the trade group that represents the interests of brokers, intermediaries, and their customers. Brokers are responsible for the selling of 51% of all general insurance and 81% of commercial insurance policies to customers. Although brokers and insurers are closely linked, the two groups offer different services as well as having different representative groups.

Earlier this month, the Association of British Insurers released its own Customers with Road Traffic Injuries: the ABI Code. It is a voluntary new set of codes, and it was ABI themselves that decided to introduce such regulations. Major insurers including AXA, Allianz, and Admiral signed up for the new code and the ABI is confident that it will prove a success because the code was devised by and drawn up by the Association itself.

Insurance companies have come under some scrutiny recently, especially in the wake of national floods and other disasters. Because brokers are usually the organisations and groups that dealt with the initial enquiry and helped clients to arrange their own policies, it means that they are also often treated as the first port of call by a lot of customers. However, because they do offer different services, it means that they are not included within the new ABI code.

BIBA has not confirmed a precise timeline for introducing a new code of conduct, but they have said that it will be similar in its aims to the BIA code, and they are hopeful that it will come into force within the first six months of this year. It, too, will be a voluntary code.

General PI NewsFeb 5th, 20140 comments