Research commissioned by the British Insurance Brokers’ Association suggests that regulation costs amount to 5.2% of insurance premiums collected. This equates to 3.3% for insurance brokers and 1.9% for insurers, with costs being higher for brokers, despite their lower systemic risk.

In carrying out the research, London Economics analysed both the direct and indirect costs of regulation borne by a sample of BIBA brokers and insurers covering both personal lines and commercial business.

The research builds on a 2023 study which found that direct regulatory costs for brokers were 40% higher than they were in 2019.



See the next issue of CIR Magazine for more on this research

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