This follows the recent collapse of Tribune leaving many homeowners uninsured just coming up to the Christmas period.
The IIB “Insurance Wholesaler Status Report” service is intended to provide factual information on schemes and facilities offered in the UK insurance market offered by wholesale intermediaries. The on-site audit will review all terms and conditions of the products being offered, check all documentation and obtaining references from the underwriting insurers.
Simon Hood, Chief Executive of Select & Protect commented,
“ Many brokers and agents are selling policies without first assessing the viability of their chosen partner, the wholesaler, and who they represent. Indeed the Tribune situation has highlighted a need to research sustainability by agents and brokers of their chosen partner. We all have a common duty to ensure we are supported by the backing of a partner who can provide longevity and security over and above short term financial gains.
The Tribune story is a timely reminder to agents to look behind the company they are putting their clients into. In fairness this is a time consuming process but forewarned is forearmed and time spent in this research will reap benefits in the future. With the proposed new audit there can be no excuse and I’m sure that all agents and wholesalers welcome the IIB’s proposal.”
Hood adds,
“We believe that we will see more unsustainable offerings disappear from the market during 2004, either through the sale of companies or through the withdrawal of the insurers who are backing the offering. It is ridiculous for anyone to believe that General Insurance commission rates that are on average higher than those available in the Insurance Broking market are sustainable in the financial services marketplace. An Insurance Broker will typically collect the premium from the client, issue their policy documentation, help them through the claims process and ensure their policy continually meets their needs. Whereas, placing business with a wholesaler means that the involvement is restricted to the sale process after which the provider or, in some cases, the insurer will deal with the client on all other matters.
We welcome and fully support the involvement of the IIB and the proposed implementation of their Insurance Wholesaler Report service and this will bring added reassurance to the market following such an untimely and unfortunate blunder”
