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Insurance Business | 08 Aug 2013, 12:00 AM Agree 0
Get Informed director Kate Fairley tells Insurance Business why direct insurers should adhere to the same rules as brokers.
  • Kay Jackson | 08 Aug 2013, 10:05 AM Agree 0
    Amen to that
  • Terry | 08 Aug 2013, 11:54 AM Agree 0
    please Kate...... I see it everday. A broker has a buyer group tailored policy with oodles of benefits and will move the cover to an overseas underwriting agency for 10% saving.
  • Kate Fairley | 08 Aug 2013, 03:22 PM Agree 0
    Thanks Kay.

    Terry, perhaps those brokers need more training firstly in the product and also sales so they know how to sell product features to clients. When the broker allows a client to believe they are saving 10% and receiving the same product coverage they are putting their licence at risk as well as the client. But that's another issue.

    My issue at the moment is with the barrage of direct insurance marketing based on price instead of product coverage.
  • Scott | 09 Aug 2013, 09:40 AM Agree 0
    We've found annually contacting every client annually really helps build the rapport & gives us a chance to actually explain the benefits (rather than hope they read a boring bit of paper) of going through a broker, rather than a direct insurer.
  • Robert Cooper | 09 Aug 2013, 10:43 AM Agree 0
    I would amend the "General Advice" rules and demand all direct insurers provide in writing the policy differences between their cover and the one they are trying to persuade the customer to move from. Further, they need to explain in summary form where their policy varies from the legislated prescribed contract of a Motor or Householders policy and have the client sign off on that. Virtually direct insurers provide their own SOA needs to be demanded. This would meet the intent of the FOFA legislation and protect the consumer who undoubtedly is not and not expected to be an expert on insurance but wants to know he is adequately covered for a fair price. As Brokers we have this duty, the direct insurers should have a similar duty of care. The direct insurers seem to have more complaints about their coverage than what Brokers arrange for their clients and have been getting away with it for too long. Time to restore the balance because overall we all get tainted when things go wrong.
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