New Fair Value Assessment Framework launched exclusively for BIBA members

Authored by BIBA

The British Insurance Brokers’ Association (BIBA) has launched a new framework to help members articulate, assess and evidence the value of the services they provide to meet regulatory requirements. Created by economics and finance consultancy Oxera, the Fair Value Assessment Framework is available to members on BIBA’s website. A dedicated webinar will be hosted on 26 October to provide brokers with a detailed overview.

The Framework and accompanying material are voluntary, and designed to help brokers implement or refine their own fair value models to best suit their particular customer segments and operating models.

The new Framework has been developed in the context of the Financial Conduct Authority’s (FCA) findings within the multi-occupancy buildings sector. It will provide brokers with a useful tool for them to assess the value they deliver through their services in a structured way.

BIBA CEO, Graeme Trudgill, commented: “BIBA members are committed to providing fair value to the customers they serve, as well as the new policy stakeholders created in relation to multi-occupancy properties, reinforcing the core principle that the broker is the agent of the customer and acts in their best interest.

The new Fair Value Assessment Framework will help our members to demonstrate the value they provide to customers and it can be applied by member firms of all different sizes.”

Reinder Van Dijk, Partner, Oxera, commented: “Oxera was delighted to partner with BIBA to produce this Fair Value Assessment Framework. It has been a process with excellent engagement from many BIBA members along the way. The end product is a richer tool which members can use to ask the relevant questions in a structured way, regardless of the size or business model of the firm or the particular propositions they deliver.

The framework helps firms define the ‘space’ within which fairness is achieved and, where necessary identify the steps so that fair value will be delivered.”

BIBA members are encouraged to review the framework and register for the webinar on the 26 October.