The UK’s two leading insurance broking organisations are in formal discussions on a merger that will provide a united voice in negotiations over new government regulations.

A merger of the British Insurance Brokers’ Association (BIBA) and the Institute of Insurance Brokers (IIB) has been rumoured for the past 18 months, but last week they confirmed talks are under way and may be enacted before the end of the year. BIBA’s membership is made up of 1700 firms, while the IIB has 1000 members, most of whom are small firms.

IIB CEO Barbara Bradshaw says the time is right to build on collaboration between the two organisations as they face “major challenges” in a difficult economic and regulatory environment.

She and her BIBA counterpart, Eric Galbraith, are expected to work together in a united organisation.