Biba launches guide to help brokers with cost of living crisis

At a time of high inflation and the growing prospect of a recession, people and businesses are all looking at ways to reduce or contain expenditure, Biba said. 

Biba said its conclusions are backed by research undertaken by both Premium Credit, its own efforts in 2022, and are published in the 2023 manifesto.

Biba executive director Graeme Trudgill said: “Cutting back on cover could be a false and dangerous economy, resulting an increase in underinsurance, a reduction in resilience, and a greater potential for non-disclosure and fraudulent claims.

“This guide will help brokers explain the reasons behind the premium inflation we have seen and how to explain the value of insurance while supporting customers in meeting their budgetary concerns.”

Biba highlighted the guide includes tips on ways customers can contain premium spend without compromising protection.

Regulation and cost of living

Earlier this year, law firm DAC Beachcroft highlighted how the cost of living crisis would impose an extra regulatory pressure on brokers.

In a report released in January, the law firm stressed that the cost-of-living crisis will place additional regulatory expectation on the insurance market and that the Consumer Duty will challenge both insurers and distributors.

The FCA is set to build on the experience of the pandemic in making clear its expectations of firms who deal with customers exhibiting vulnerability.

According to DAC Beachcroft the authority will expect firms to proactively support such policyholders, rather than relying on their strict legal rights.

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