Brokers told that all policies due after 1 July will move to Corinthian
Hundreds of brokers have been told that all renewals for HSBC Ireland's private motor business will transfer to Corinthian Insurance from 1 July.
Though some brokers conceded that the deal made sense, others speculated that there could be problems, blaming HSBC Ireland's poor loss ratio.
One broker said that he found the business "hard to support".
It is understood the business is worth about £20m in gross written premiums.
Brokers received a letter, dated 27 May 2004, which stated: "From this date two slots will appear on your quote system for the HSBC Select product.
The original product is to be used to calculate mid-term adjustments for all policies with an inception date prior to 30 June 2004.
"Going forward, the second product (HSBC Select) should be used for all policies falling due on or after 1 July 2004."
Malcolm Kingsbury, division director for intermediary marketing at HSBC Insurance Brokers, denied the move was due to inherent problems with the business.
"It was the group's decision to consolidate the motor underwriting business under one roof," he said.
Corinthian would not comment on the arrangement.
HSBC Insurance Holdings owns 100% of Corinthian Insurance, which reported a gross written premium (GWP) of £161m in 2002.
Corinthian was a former Lloyd's syndicate that was acquired by HSBC in 1996.
