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  • About BIBA

    The British Insurance Brokers' Association (BIBA) is the UK 's leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.  BIBA membership includes 1,700 regulated firms. BIBA brokers handle around half the value of all UK home, contents, motor, travel, commercial and industrial insurance policies. Insurance brokers make a direct and indirect contribution of 1% to UK GDP.  

    BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.  BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards. 

BIBA launches new broker-insurer TOBA template

BIBA-launches-new-TOBA-template

A new broker-insurer Terms of Business Agreement template from the British Insurance Broker’s Association will increase productivity and reduce the frictional costs in business.

Lloyd’s has a simple solution to the issue of varying TOBAs, producing one for risk transfer and one for non-risk transfer, so why does the general insurance market seem to complicate TOBA matters?

Responding to member calls for help to increase efficiencies and reduce frictional costs BIBA, working with many other industry stakeholders, has produced a voluntary TOBA template that is well balanced for both brokers and insurers alike.  Promoting widespread acceptance of the new template will revolutionise the process of formal terms of business agreements in the general insurance marketplace resulting in less strain on the resources employed in reading, checking and challenging TOBA content to the tune of up to 80 person-hours.*

This massive reduction in workload on all sides could be achieved due to the standardisation in the template of the common clauses that appear in all TOBAs and which make up more than 70% of the usual content.  It will provide a base platform for the broker-insurer relationship which can be amended, added to or reduced if required by brokers or insurers to take into account trading relationships.

It is BIBA’s belief that broad take-up of a standardised TOBA document, in addition to the undoubted time savings, will:

  • Reduce bureaucracy
  • Reduce broker queries and issues
  • Reduce costs
  • Reduce disputes
  • Increase productivity

Graeme Trudgill, BIBA Executive Director said: “Members have asked us to find a solution to this administrative burden which has most definitely affected their productivity.

“We felt so strongly about this that we made it one of our key manifesto issues for 2018.  Our technical team have sought opinion from many stakeholders and this resulting TOBA template will benefit both insurers and brokers for many years to come.”

Tim Ryan, Executive Chair of Ryan’s and BIBA Main Board member said: “To increase productivity we need to reduce the frictional cost of doing business. Having dozens of ever so slightly different trading agreements which require continual review by lawyers and regulatory staff is a classic case. I am determined to facilitate a widespread uptake of this new BIBA template.”

Peter Blanc, Group CEO Aston Lark Group and BIBA Main Board member said: “It is vitally important that brokers can take steps to improve efficiencies and be allowed to concentrate on what they do best – advising clients on their insurance needs.

“This is a giant step forward in allowing our sector to evolve to the needs of the fast-moving digital age we are operating in.”

The new TOBA template, compliant with GDPR and benefiting from extensive legal input, is being rolled out to brokers, insurers, MGAs and networks. It can be used immediately or as new TOBAs are planned by insurers.

*Average TOBA is circa 12,000 words; Average reading speed is around 250 words per minute reducing to 75 per minute for highly technical content so:

  • 12,000 @ 250 pm = 48 minutes per TOBA
  • 12,000 @ 75pm = 160 minutes per highly technical TOBA
  • Assume an average broker may have 30 different TOBAs (many have more) this means 160 /60 x 30  =  80 hours spent just reading a technical TOBA.
  • Plus, the time taken to consider the implications of a clause, raise queries, undertake negotiations and to make and agree amendments.
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