The row between Zurich and Folgate deepened this week as Folgate chief executive Andy Homer accused the insurer of attempting to "steal" the broker's business.
Both Zurich and Folgate said they had an "amicable" meeting and had agreed terms for the run-off of the broker's commercial agency after Zurich took the decision to cancel it.
But Folgate chief executive Andy Homer said the insurer had also revealed that it would be writing directly to local brokers in an attempt to "steal our business".
Homer said he was extremely concerned about the development. "This is an unprecedented move and raises questions about what happens when relations are terminated. This is an issue for Biba and the ABI to look at. We feel the current situation is unsatisfactory. I am seeking a meeting with Ian Stuart [Zurich UK general insurance chief executive] as soon as possible, as we believe this is an ill-considered situation, although we are resigned to it."
Homer also said the broker would be offering business it had traditionally placed with Zurich to rival insurers, and that it had had a good initial response.
"We will continue to buy brokers in line with our business strategy but will particularly target brokers with a large Zurich account," added Homer.
Zurich UK commercial head of market management David Smith confirmed the insurer would be writing to clients offering the chance to renew their business through another broker. But Smith said Zurich would not be asking clients to renew direct with the insurer.
The personal lines agency between the two remains unaffected by the dispute.
