What does a typical client want? Cheaper Insurance we hear – and the industry delivers....
Have been reducing rates since 2002 due to increased competition and have attempted to maintain profits by reducing cover and declining claims through:
Imposition of Warranties and Conditions
Applying inner limits to escape full payments
Relying upon non disclosure of material facts when proposal forms are no longer required
Small print is often justified in the name of health and safety or environmental legislation making even exceptionally run business prone to a negotiation in the event of a major loss. We have a case study on this issue .....
The industry is increasingly focussed on claim free risks leaving manufacturers and larger concerns paying punitive rates resulting in a two tier market.
Most of our competition has disappeared into larger organisations and their investors having built business plans on the back of rate increases are now taking percentages of underwriting profits.
Placing business for increased commissions
Declining claims to maintain profits required to justify commission levels
Arranging Managing General Agents to tie clients in with their existing broker for 12 months and circumvent commission disclosure rules