Insurer rules out wider broker distribution in new market

Insurer rules out wider broker distribution in new market | Insurance Business

Insurer rules out wider broker distribution in new market
Zurich says it does not plan to enter the broader dealer house account market outside of its new arrangement with Toyota Financial Services Australia.

Earlier this week Insurance Business reported that Zurich had partnered up with Toyota Financial Services Australia to provide dealership insurance to Toyota dealerships, representing Zurich’s first foray into the dealer insurance market.

Steadfast CEO and managing director Robert Kelly asked, on the Insurance Business website, if the product will be offered via Zurich’s intermediary network and another reader left a similar comment.

Responding to the queries, Sean Walker, general manager, underwriting – corporate, said: "After being approached by a broker, Zurich Australian Insurance Limited has worked with Toyota Financial Services Australia for the provision of general insurance in relation to dealer house account risks within the Toyota dealer network. Zurich does not propose to enter the broader dealer house account market outside of this arrangement.”

However, he added: “Brokers representing eligible Toyota dealerships should discuss the suitability of the cover with their customer."

Aioi Nissay Dowa Insurance Company is included in the deal.
 
5 Comments
  • Mark 2014-07-16 11:52:16 PM
    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.
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  • Darryl W 2014-07-17 7:10:12 AM
    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.
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  • Mark 2014-07-17 10:51:45 PM
    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).
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