Daily briefing: Monday - help the aged?

Referral fees continue to dominate the headlines, with a blizzard of coverage in the national media over the weekend. The spotlight is beginning to turn on individual companies, with today’s reports that listed insurer Admiral is set to suffer from any ban on referral fees. Meanwhile, Moody's believes that AXA’s decision to stop accepting fees will put pressure on other insurers to follow suit, and be credit positive for the industry as a whole.

The referral fees story has some way to run yet. While it’s old news to those in the industry, it apparently needed the help of Jack Straw to hit the national agenda. Insurers are getting a hard time from the consumer press and other media – but are determined to use it to their advantage in pressing for reform. Watch this space.

Public private partnerships

The government’s sudden interest in referral fees wasn’t the only story highlighting the sometimes uncomfortable relationship between insurers and the public sector today. The Dilnot Commission's report highlighted a scenario where private insurers could come under pressure to offer policies covering residential care for the elderly.

This blurring of the lines between private and public sector responsibilities is all too frequent – witness flood insurance, and the vaguely defined 'Big Society'. If insurers are to be called on when the public sector fails to deliver, then there needs to be a very clear understanding of their role. After all, insurers are businesses with responsibilities to their shareholders. The government too often forgets this.

Jobs reach record high

And finally, some good news. According to the Reed Job Index, demand for general insurance staff has risen to a record high, with the number of advertised jobs 48% higher than in the depths of the recession. Money is still tight (Reed also report that will job numbers have risen, salaries have stayed flat). But perhaps there is light at the end of the tunnel.