UK brokers say it is increasingly hard for people and businesses to access the advice and products they need because of overly stringent regulation.

The British Insurance Brokers Association has written to Chancellor Rachel Reeves saying that in the first quarter, only two new general insurance brokers were authorised by the regulator, while “over the same period, dozens threw in the towel”. 

“This is the canary in the coal mine for a sector that is a cornerstone of the UK economy,” association CEO Graeme Trudgill said.

“We need action now. We want to support the government’s growth agenda, which is only possible if it is underpinned by world-leading regulation which acts as a force multiplier for the UK at home and abroad.” 

The letter was released before a speech this week in which the Chancellor said reforms would target regulatory support at industries, including insurance, where the UK has a comparative advantage. 

BIBA has called for a “far more proportionate” regulatory framework that reduces unnecessary complexity and encourages innovation.

The Financial Conduct Authority’s recent consultation on simplifying insurance rules was a welcome start, Mr Trudgill said.

“But real growth demands a far more balanced rule book and reasonable reporting requirements which do not hinder our everyday operation or our own ambitions for growth.”