Insurance brokers may not have enough knowledge to fulfil their obligations in emerging markets, when the Insurance Act comes into effect this August, according to the British Insurance Brokers Association (BIBA).
Speaking at the Insurance Times Cyber Charter, BIBA corporate affairs manager Andy Thornley said he hopes that in markets, such as cyber insurance, brokers will be able to operate. But he added, in light of the Insurance Act, people are thinking they may not know enough about the subject and so are leaving it for the specialists.
“There are a number of challenges for brokers and the Insurance Act will increase the responsibilities the broker has. Broker knowledge is customer knowledge. In terms of presentation of the risk, that needs to be done to an appropriate standard.” Thornley says.
This could result in an increased number of specialist cyber brokers, who can understand and present cyber risk in a way that is compatible with the Insurance Act.
BIBA chief executive Steve White has already announced the formation of a BIBA Cyber Committee comprised of technical experts, which will monitor developments and provide guidance on the current risks and insurance available.