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Insurance Business | 05 Dec 2013, 08:03 AM Agree 0
Insurers may tempt brokers with "like-for-like" special offers on personal lines following Vero's controversial commission cuts.
  • Jack | 05 Dec 2013, 10:31 AM Agree 0
    I don't think ASIC would have to worry too much about Brokers moving because of higher commissions - Most of the Cluster Group policies are the SAME wordings for ALL the underwriters...so the client is no worse off and most underwriters are much of a muchness when paying claims.
  • rick glavocih | 05 Dec 2013, 10:49 AM Agree 0
    yes there are companies that I think are trying to bugger the broker input by selling product via credit unions using them as agents still paying the commission but they should remember it was the brokers who were the one who help make these companies and yes they don't like to hear comments like this but its true
  • John | 05 Dec 2013, 11:16 AM Agree 0
    The issue with this is the lack of prior consultation with brokers and also the lack of foresight as to the likely consequences of both the decision and the manor of its delivery.

    It's just another example of the contempt with which brokers are treated by insurers. It's high time the insurers stopped saying 'no, can't or too hard' and started writing business.

    We're all links in a chain, if they think they're being smart by trying to remove brokers, the cluster groups can just as easily negotiate a deal with an underwriting agency or LLoyd's direct and remove a link that way. And we'll see who's laughing then.
  • Mark | 05 Dec 2013, 12:30 PM Agree 0
    i truly believe the insurers with both broker and direct arms, are trying to steer clients to the direct arm, they pay less claims because of the reduction in cover, they dont want brokers helping clients with tricky claims, they dont want brokers providing advice, where is their "best interest" for the client?
  • Stuart Redmond | 05 Dec 2013, 01:27 PM Agree 0
    I have seen internationals use political pull to manipulate Insurer's into doing what they want. For smaller brokerages, the Insurer's tend to care less as the financial impact to them won't be as big. Yes there will be brokers who shift business simply for higher commissions. Good luck in policing that! Believe the Insurers are happy with the basis of divide and concur. As long as smaller brokerages see each other as competitors and chose not to work together, Insurer's will always have their way.
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