Liiba - New broking body splitting loyalties

The London Markets Brokers' Committee has sent a letter to all 152 of its members to advocate setting up a separate broking association to the British Insurance Brokers' Association for London and international brokers.

A senior source close to the LMBC has said that it has had a positive response to the letter and that it was progressing with the process. The source added: "The acid test will be when we go out more formally. We are already looking at three quarters of the market share responding positively. We need a more focused interest group with issues that directly affect our community." The London and International Insurance Brokers' Association is expected to start in January, based in the City. Heath Lambert has already made a u-turn over its decision to join Liiba, deciding to now to sign up, though it will remain with BIBA. Aon, Willis and Cooper Gay have also confirmed that they will join Liiba and stay with BIBA. Marsh is yet to make a decision over whether or not it will remain with BIBA.

Graham Lark, chief executive at Lark, said: "Our expectation is that we will remain with BIBA. I don't think many brokers will want to be members of both. This is going to be more appropriate for the larger, international brokers."

Despite reports of disagreement over an industry-led solution to commission disclosure, Eric Galbraith, chief executive at BIBA, said: "Within BIBA, including our London Market Brokers Committee and our General Insurance Brokers' Committee, there are no policy differences to our approach to any issue." BIBA said that it will continue to have a London region and that the LMBC would carry on representing London market brokers.

Some international brokers have been making strong calls for full commission disclosure. John Hurrell, chief executive atthe Association of Insurers and Risk Managers, said: "It has been an impossible job for BIBA to satisfy all its members. Our clients (mainly large corporates) want full disclosure and most of them are already receiving it. There are clearly a lot of conversations going on behind closed doors."