The Association of Mortgage Intermediaries (AMI) has reported it is in talks to potentially create a protection-specific focus within the body. Many in the industry have supported the move, but what necessary results would such a body need to produce to justify its formation?
Robert Sinclair, chief executive, Association of Mortgage Intermediaries
This response is my personal opinion as AMI has yet to establish a final policy position on this issue.
The body would need to represent one facet of the industry - namely distribution as the manufacturing element is already well represented by the Association of British Insurers (ABI). In establishing any entity it would need to represent all main types of distribution in protection.
In order to be "justified" it would need to embrace all sizes and types of firms and give them a voice. In addition it would need to represent more than two thirds of the market and to be funded by its core membership and not reliant on provider funding.
In establishing its "policy board", the individuals nominated would have to embrace the wider industry perspectives and leave their own commercial interest at the door.
In terms of results it could have three initial areas of focus. Firstly, it should work to ensure that any European regulation changes to the Insurance Mediation Directive or Packaged Retail Investment Products initiative allow UK distribution to operate effectively in the interests of UK consumers.
Secondly, it should ensure that the proposed work by the FCA on lead generation and aggregators does not stifle innovation, competition and accessibility.
Thirdly, it would need to establish the policy points that it can agree with the other industry participants so that the industry can deliver strong responses to politicians and regulators that also embrace great consumer outcomes.
Luke Ashworth, co-Founder and chief executive, Protected.co.uk
Protection distribution has been stuck in the dark ages for the last 25 years. I attend numerous conferences where the need for change is repeatedly discussed, but nothing ever changes.
Past failures are used as an excuse not to change. Everyone always seems to wait for someone else to move first.
There is a fundamental issue where passion is mistaken for ego; many are paranoid about others being in it for their own ends. And yet we all work in or own businesses, so will surely always be in for own end to some part.
We must focus on change. There are some imminent battles which have the potential perhaps even to halve the size of our industry.
A body is needed to represent the specific needs of protection distributors within government, the FCA, insurers and Europe. It needs the clout to build better relationships and the experience to know how to use them. It needs to encourage those that have the power to make drastic decisions to get to know our industry first.
There have been efforts in the past along these lines. But it is not important whether you get knocked down - it is whether you get back up again and keep fighting for what you believe is right.
Without a concerted effort to put the past down and push on with renewed vigour with this idea, we run the very real risk as distributors of yet again allowing the world to change around us.
