We have published the final report for our Wholesale Insurance Broker Market Study, concluding that while there is room for improvement, we have not found evidence of significant levels of harm that merit the introduction of intrusive remedies. As a consequence, we are closing our market study and this is, therefore, our final report.
Annexes to the interim report and research:
In November 2017 we launched the study to assess how effectively competition is working in this sector with the publication of our terms of reference.
As part of the study we analysed feedback to our Terms of Reference paper; responses to our data request; commissioned independent client research; and sent a survey to clients. We also had individual discussions with firms and other stakeholders and carried out a variety of analyses.
Overall, we have not found evidence of significant levels of harm to competition that merit the introduction of intrusive remedies. As a consequence, we are closing our market study and this is, therefore, not an interim report but our final report. We have, however, identified some areas which warrant further action, in relation to conflicts of interest, the information firms disclose to clients and certain specific contractual agreements between brokers and insurers. These areas can be addressed within our usual supervisory processes. Given the dynamic nature of the market, we will continue to monitor developments in broker business models and the effectiveness of competition.
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