UK brokers are stung by the most expensive regulatory regime in the world, according to research by the British Insurance Brokers’ Association (BIBA).

Fees and levies cost more than five times as much as in New York State and Japan, according to the study, which was compiled in partnership with researcher London Economics.

Small UK brokers pay out four times the global average on regulation while large brokers pay 14 times more.

Singapore, Luxembourg, Denmark and Hong Kong followed the UK as the most expensive out of the 23 jurisdictions surveyed.

In Germany, South Korea and Spain insurance brokers do not have to pay any annual regulatory fees or levies. France and Australia were the next least expensive countries.

BIBA CEO Steve White says UK brokers are disadvantaged.

“We will work with the Financial Conduct Authority on the review of its funding to find a more equitable system,” he says.

Executive Director Graeme Trudgill says the cost of UK regulation needs to be more proportionate to the limited risks posed.