The British Insurance Brokers’ Association (BIBA) says some members may withdraw from personal lines insurance sectors because of the high cost of meeting regulations proposed in the Financial Services Bill.

BIBA CEO Eric Galbraith says the incoming Financial Conduct Authority (FCA) should “consider the unfair and disproportionate impact current regulatory proposals could have on insurance brokers”.

He has called on the Government to involve the private sector in the drafting of laws and warns UK and European regulations are threatening the insurance industry’s competitiveness.

The FCA will begin operations next year, replacing the current regulator, the Financial Services Authority.

The Financial Services Bill is currently before Parliament.