Danny Walkinshaw and Saxon East give a run-down of the week’s biggest stories and asks: will broker fees be the main talking point at Biba?

Broker remuneration has been one of the big talking points in 2011, as Insurance Times has reported in great detail. This week the issue returned to the spotlight as we reported Aon’s defence of its controversial carrier charge. There has been tension in and around Lloyd’s over the charges and how they will satisfy the new Bribery Act legislation which comes into force in July. As we revealed last week, The Lloyd’s Market Association (LMA) consulted law firm Reynolds Porter Chamberlain and is set to advise underwriters this month over broker remuneration. Lloyd’s performance management director Tom Bolt also wrote to insurer chief executives about signing up to broker service charges.

Concerns also remain over Aon’s Global Risk Insight Platform (GRIP) two years after its launch, as a number of insurers have yet to sign up to the database. So we looked at why GRIP was causing such a stir amongst underwriters.

Other mega brokers are believed to be looking at their own platforms as they seek increased commission payments from insurers. But will the furore around Aon’s system and the eventual outcomes deter others from adopting a similar model?

Also expect this issue to dominate conversations between insurers and brokers at next week’s Biba conference in Manchester. Follow our coverage of the Biba conference on BIBAvision.

Riverbourne goes the (Square) mile

This week we revealed the latest restrictive covenant battle taking place in the broker market. Riverbourne Group is suing Square Mile Broking, a rival firm, and two of its former staff who have joined the company. The case refers to accusations of secret meetings in pubs and Riverbourne claims it is owed £400,000 in compensation. The outcome of this one could be explosive.

Quinn some, lose some

We detailed more revelations surrounding Quinn Insurance this week. The UK motor book of the Irish insurer could be hived off, US insurer Liberty Mutual, don’t take up their option of first refusal. The motor book has been criticised for its performance, particularly prior year losses, and remains under administration. Could anyone be brave enough to take a gamble on it?

Consolidation frenzy spotlight

Which Lloyd’s player will be next to join the list of firms snapped up in a much anticipated consolidation frenzy in the London market? Novae is the favourite amongst analyst, but our spotlight on the London market examines why. We also quizzed Cooper Gay Swett & Crawford chief executive Toby Esser in this London market special.

Losses for Zurich

Today, Zurich announced an underwriting loss of $8m in the UK, compared with a $5m underwriting profit this time last year. You have to wonder how much of the loss is from claims filtering through from the big freeze.

Slightly better news for AXA, whose revenues were up 6% to €916m following rate rises of 6.2% averaged across personal lines and commercial lines. It’s too early to say if the Amanda Blanc effect is kicking in, but we should know more by the half year point.

Lloyd's starts compensation piggy bank

So it looks like the banks won’t be challenging the FSA on PPI, and Lloyd’s has today put aside £3.2bn in compensation for mishandled PPI claims. That’s bad news for insurance brokers because it means credit brokers and mortgage brokers are likely to go bust.

We all know what happens next: the outstanding compensation claims are mopped by the FSCS which then increases the levy insurance brokers pay annually.

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