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Insurance Business | 17 Jul 2014, 08:12 AM Agree 0
An insurance company has ruled out expanding its recent foray into a potentially "volatile" new market, beyond the deal it has already struck with a major company at the behest of an insurance broker.
  • Mark | 17 Jul 2014, 09:52 AM Agree 0
    Hi Zurich - Thanks for your response.

    Please be advised that, for every Toyota Dealership I hold that transfers to this new arrangement, I will be looking to transfer the equivalent amount of premium of other Zurich business to another insurer.
  • Darryl W | 17 Jul 2014, 05:10 PM Agree 0
    Interesting comment Mark - I've heard brokers make this comment before but do you or they adopt a similar approach with the other major insurers who write direct business VIZ: Vero / Suncorp, Allianz, QBE etc.
  • Mark | 18 Jul 2014, 08:51 AM Agree 0
    Yes Darryl,
    Not so much with the direct insurers (domestic), but we do with those that have traditionally used intermediated products and offered them to the direct market (Allianz Business, now CGU Trades / PI).
  • Just An Observer | 18 Jul 2014, 11:32 AM Agree 0
    Sorry to see Zurich make the "First" move away from their Broker only strategy. But then I have always thought that Brokers really did not give them enough support to reward their broker only strategy.

    Thus in part brokers only have themselves to blame for this move.

    I also have to agree with Darryl's comment.

    Over 39 years I have heard similar comments to Mark's, but experience has taught me that such threats usually only last 3 to 4 months. And are only made by a couple of brokers.

    At the current rate in the not to distant future when the direct insurers and all the insurers who use multiple distribution channels have effectively wiped out the small and mid term brokers we will look around and ask what happened.

    Then the broking industry will consist of only the multi nationals and a few large national brokers doing specialist covers. All of which will be placed direct into London.

    Then the National Museum will have an exhibition to another Australian extinct species, The Australian Insurance Broker.

    Customers will have to learn Hindi, Chinese, or Filipino in order to get some customer service !!

    Which may not be a problem as most will not have jobs and thus have nothing to insure !!

  • A Broker | 18 Jul 2014, 02:09 PM Agree 0
    I think that you are all missing Sean's point. He clearly states that "after being approached by a Broker, Zurich........".
    Clearly, a Broker has designed, created and structured this arrangement on behalf of Toyota for the benefit of all their Dealers.
    If that is correct, then Zurich have responded to the approach and request of a Broker, as all good intermediated Insurers would normally do.
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